He said this charge of cess made the jewellery exports unviable and uneconomical, as the cess is not part of import duty. “Jewelleries are sold on international pricing of gold, and this additional cess hampers the export and growth of the industry,” Shah added.
On February 17, the finance ministry had issued the notification of the amendments made to the Finance Bill 2021 with regards to the AIDC exemption on gold and silver bars and dore for exporters. However, the notification maintained that the gold and silver bars and dore imported for domestic use will attract AIDC. In the Finance Bill, 2021, AIDC of 2.5 per cent was levied on import of gold/silver bars and dore.
The government’s recent decisions, including the reduction of import duty on precious metals like gold and silver to 7.5 per cent from 12.5 per cent and the amendments made on the gold monetisation scheme (GMS), will also boost the industry, GJEPC said in the statement.
These amendments will encourage domestic gold to come into the system by empowering banks, large jewellery stores as BIS-certified gold collection centres, it added.