Kolkata, Feb 1 (PTI) The jewellery sector is elated with the reduction in customs duty on cut and polished diamonds in the union budget placed in Parliament on Tuesday and said the step will boost demand for diamond ornaments.
Small gold jewellers, however, said the government should have reduced import duty or GST of gold as diamond is not for the common people.
“Union Finance Minister Nirmala Sitharaman’s announcement of reduction in customs duty on cut and polished diamonds and gemstones and plan to develop a simplified regulatory framework to facilitate export of jewellery through e-commerce are positive steps which will enable the sector to grow in the country and boost exports,” Senco Gold & Diamonds CEO Suvankar Sen said, De Beers, India, managing director Sachin Jain said, “We are pleased with the budget announcement for our sector, particularly the reduction of customs duty on cut and polished diamonds from 7.5 per cent to 5 per cent. This will spur greater demand for natural and real diamonds and also give an opportunity to diamond companies to boost operations and, in turn, contribute to greater economic growth for the nation”.
The reduction in the import duty of the precious stone is a very positive sign which will help to make the manufacturing of jewellery using diamonds more attractive and affordable. This will help the overall gems and jewellery fraternity, Anjali Jewellers director A U Chowdhuury said.
Small gold ornament store owners said diamond jewellery sale is a fraction of the total jewellery business in terms of units and is not affordable for the common people. Any easing of the tax burden on gold would have helped a large population and small artisans.
“Government has supported rich people by encouraging them to buy diamonds,” a city jeweller said.
Sen said the focus on investment in infrastructure is positive for the economy and the review of the Special Economic Zones Act will help boost the export infrastructure. PTI BSM KK KK KK
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Source: The Print
