The Finance Minister boosts the gems and jewellery industry by lowering the import duty on cut and polished diamonds and gemstones to 5%.

*Paromita Das

In the Union Budget 2022, Finance Minister Nirmala Sitharaman announced a reduction in customs duty on cut and polished diamonds and gemstones in order to strengthen the gems and jewellery sector. The import duty has been reduced from 7.5% to 5%.

The Finance Minister stated, “Simply sawn diamond would attract zero custom charges.”

A simplified legal framework will be established by June this year to promote the export of jewellery via e-commerce, according to the Finance Minister.

The customs charge on imitation jewellery is being mandated in such a way that a duty of at least ‘400 per Kg is paid on its import to disincentives the import of cheap fake jewellery, she said.

Chairman of the All India Gem and Jewellery Domestic Council, Ashish Pethe, stated, nothing for the sector in this Budget, with the exception of a reduction in customs duty on cut and polished diamonds and sawn diamonds, which is beneficial.”

“The Budget’s emphasis on boosting the rural economy will aid the gem and jewellery business indirectly,” she added.