Budget 2022: Polished diamonds, gemstones to get cheaper | Details

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Prices of polished diamonds, and gemstones are set to get cheaper with the government reducing the customs duty taxes, and reducing import duty in the budget. The cut was announced by Finance Minister Nirmala Sitharaman during her presentation of Budget 2022 on Tuesday.

The Budget said customs duty on cut and polished diamonds and gemstones are  being reduced to 5 percent in order to “boost the gems and jewellery sector." Simply sawn diamond would attract nil customs duty, according to Budget. At present, the import duty on cut and polished diamonds and gemstones is 7.5%.

To disincentivize import of undervalued imitation jewellery, the customs duty on imitation jewellery is being prescribed in a manner that a duty of at least Rs 400 per kg is paid on its import, the Finance Minister added.

On the Budget proposal, All India Gem and Jewellery Domestic Council Chairman Ashish Pethe said, "Overall the Budget 2022-23 seems positive but there is nothing specific for the industry in this Budget except the cut in customs duty on cut and polished diamonds and sawn diamond, which is positive for the industry."

To disincentivize import of undervalued imitation jewellery, the customs duty on imitation jewellery is being prescribed in a manner that a duty of at least Rs 400 per kg is paid on its import, she added. The Gem and Jewellery Export Promotion Council noted that the sector is one of the leading contributors to the national economy and the country is the undisputed leader in diamond processing.

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