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Jewellers want cut in import duty of gold and in income tax in Budget 2020

Jewellers are expecting a reduction in import duty of gold and a cut in income tax for the common people in the upcoming Budget to spur demand. At present gold attracts an import duty of 12.5% and a GST of 3%.

, ET Bureau|
Last Updated: Jan 22, 2020, 02.42 PM IST
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Kolkata: Jewellers are expecting a reduction in import duty of gold and a cut in income tax for the common people in the upcoming Budget to spur demand. At present gold attracts an import duty of 12.5% and a GST of 3%.

"I am expecting a significant reduction in import duty on gold in the upcoming Union Budget. Also expecting a cut in income tax bit for a common man which will augment disposable income and contribute to enhancing spending on items like gold and jewellery and other consumable sectors. The government had set up the Domestic Gold Council to upgrade the growth of the sector and boost exports of jewellery which is still awaiting while there are several important issues that need to be addressed. Onne that requires immediate attention is the ailing banking sector. A strong and well-capitalized banking sector support is the need for the sector," said Saurabh Gadgil, chairman and managing director of Pune-based PNG Jewellers.

Added Vaibhav Saraf, director, Aisshpra Gems & Jewels, "Gold jewellery demand should increase in financial year 2020 with growth in the range of 10-15% due to elevated gold prices. We hope for a reduction in import duty on gold from 12.5% to 8.5% After the duty hike gold price is up nearly 20%. We recommend to revise tax slabs for individual tax payers. Reduction in personal income tax rates could engage the consumption and spur overall demand for goods and services.

Snehal Choksey, director, Shobha Shringar Jewellers said "The current trend of jewellery industry as a whole is subdued and we have seen a de-growth in business compared to last year. Many factors attributed to this situation mainly a slowdown of Indian Economy including the Steep rise in gold prices and increase in the custom’s duty by 2.5% during the year. So, given the current scenario I feel and expect that no significant change on the negative side, would be announced in the budget, which means the GST would stay at 3% the custom duty would stay at 12.5% and the requirement of Pan Card limit would not be reduced from 2 lakhs. Over all I feel the budget won't bring any negative announcement for the industry."

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