In his 2018 budget speech last week, India’s Finance Minister Arun Jaitley announced that the government is increasing import taxes on polished diamonds – to 5% from 2.5%. According to IDEX Online, the tax will be “applicable on natural and laboratory-grown polished diamonds, as well as colored gemstones”. According to other sources, import taxes on imitation jewelry were also raised – to 20% from 15%.
Gem & Jewellery Export Promotion Council (GJEPC) Chairman Pramod Agarwal said: “This move hampers India’s chances of becoming an international diamond trading hub. It doesn’t provide India with a level playing field vis-à-vis other peers such as Belgium, Dubai and Israel”.
Agarwal also spoke about the government’s plans for a comprehensive Gold Policy to develop gold as an asset class, and said that the GJEPC welcomes the move as it will “ensure a new era of development for the gold market and exports in the sector”. He added, however, that the GJEPC would “continue to seek a reduction in basic import duty on gold, silver and precious metals and hope that it will be considered as part of the Gold Policy announcement”.
