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Taxes rise on diamonds in India

5-2-2018

 

Finance Minister of India announced the increase of customs related duty on both cut and polished diamonds, coloured gemstones and lab-grown diamonds from 2.5 percent to 5 percent aimed at protecting local industry.

 

The industry had never expected such a decision. They have been demanding for a reduction in duty on gold imports. The decision has caused consternation among local diamond traders as the increase may slash the nation’s ability to compete with other diamond-trading hubs.

 

"This move hampers India chances of becoming an international diamond trading hub. It does not provide India a level playing field vis-a-vis other peers such as Belgium, Dubai and Israel," Gem & Jewellery Export Promotion Council (GJEPC) chairman Pramod Agarwal said. “The increase in customs duty would dent India’s exports, which have been stagnating over the past few years,” Pramod Agarwal added.

 

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