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India to Raise Polished Diamond Import Duty, Report Says
Oct 27, 2013 6:54 AM
By Deena Taylor
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RAPAPORT... The government of India plans to raise the import duty on cut and polished diamonds to 5 percent from the existing 2 percent tax, according to Business Standard.
The duty hike, which is expected to be announced this week, is being implemented in order to protect the interests of small-scale diamond manufacturers, the report stated.
Vipul Shah, chairman of the Gem and Jewellery Export Promotion Council (GJEPC), noted that rising imports of cut and polished diamonds poses a threat largely to small-scale manufacturers. Shah stressed that government protection in the form of a duty hike on polished diamond imports will discourage trading and thus provide relief to small manufacturers who are unable to sustain their business due to high manufacturing costs.
While the duty hike is likely to hit domestic jewelry manufacturers, the increase won't affect jewelry exporters as the duty they pay is taken back from the government through an export incentive scheme known as Duty Entitlement Passbook Scheme (DEPS).
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Tags:
Deena Taylor, diamond, diamonds, Import Duty, India
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