GJF welcome’s Union Budget!
Revamping Gold monetization scheme is
a victorious decision for the gems and jewellery sector
The Finance Minister’s announcement about government to soon come-up with a gold monetization scheme is a victorious decision for the gems and jewellery sector, said, Mr Nitin Khandelwal, Chairman, All India Gems and Jewellery Trade Federation(GJF) commenting on the budget.
However, Mr Khandelwal said, the gems and jewellery sector was expecting a cut in import duty of gold in the new fiscal year, but the industry is confident that sooner or later government will acknowledge this. GJF welcome’s the budget and feels the budget will help boost the gems and jewellery sector.
Mr Nitin Khandelwal, Chairman, Said, “The government has made excellent reforms for agriculture and rural sector which is one of the highest contributors to the GDP of our country. These reforms will empower rural consumer through improved earnings.
This will in turn help the jewellery sales in rural sector. The proposed Comprehensive Gold Policy, Gold spot exchange and Gold deposit account will be very beneficial for the Industry. We also welcome the reduction in corporate tax to 25% for companies with turnover of over 250 crores.”
Mr Sreedhar GV, Director and Past Chairman, GJF, said, “It is a welcome budget for the entire gems and jewellery sector. Government has been very assertive on the demands from the jewellery sector and have heard our voices. Gold monetization scheme was a request which the industry demanded and we are happy that government will soon have a revamp the existing gold monetization scheme.”
In the row other industry players also have casted their expressions. According to D Ravishankar of Brickworkratings, “The budget is credit positive for business environment especially for the MSME sector, one of the largest job generators in the country.” The companies with a turnover upto Rs.250 crores would enjoy the concessional rate of income tax at 25%. This move will benefit 99% of the MSMEs that file tax returns and the surplus could help them to use it for creating more jobs. In addition, allocation was made for credit support to MSMEs, he adds.
Mr Vaibhav Saraf, Director, Aisshpra Gems & Jewels said, “Happy that corporate tax has been reduced to 25%. However, since turnover cap has been placed it won’t be applicable to us. Capital gain on equity shares and no changes in individual tax slabs means that the post-tax income of individuals will go down. Increase of cess to 4% will also lead to increased gold prices and hence hamper sales. Overall the budget was slightly negative for us”.
Ms Tanya Rastogi, Director, Lala Jugal Kishore Jewellers – “It is very encouraging for the gems and jewellery industry which has already been given a major boost pre-budget by reduction of GST on loose diamonds and coloured stones from 3% to .25 %.
As expected, the budget has been a populous one with focus sectors being rural, agri and social sectors. The initiative for employment generation through Make in India and reduction of corporate taxes for MSMEs with turnover upto 250 crores is highly appreciated by our industry as the advantages should spill over to the retail sectors.
Especially the focus towards rural sector is commendable and it is also a boost for our industry as 70 % of our goods are consumed rurally. However, the rise in custom duties on diamonds & gemstones from 2.5% to 5% is a point of hindrance to the industry”.
Mr TS Kalyanaraman, Chairman & Managing Director, Kalyan Jewellers said, “The estimated growth of GDP to 7.2-7.5% in the second half of 2018 should help boost consumer demand and give a positive momentum to gold and jewellery sales. Moreover, the positive focus on the rural economy is expected to benefit the farmers with more disposable income which also augurs well for the industry.
The emphasis on healthcare, infrastructure and education will support the growth in the social sector. The issue of import duty on gold has not been addressed in the budget, and we hope that it is considered to give a fillip to the domestic industry.”
Mr. Saurabh Gadgil- CMD, P.N.Gadgil Jewellers said, “The Union Budget FY 18-19 seems to be in the right direction, it is indeed a very welcoming budget by the finance ministry, it lends focused plans of development and upliftment for the agricultural sector.
This will give a boost and strengthen agriculture, which is the backbone of our economy, this will have a direct proportional effect on the gems and jewellery industry. This budget has given a clear indication that the ministry feels it is time to clean and organize the gems and jewellery industry by introducing the best practices proposed by Indian Bullion and Jewellers Association.
The budget has announced to make provisions for Gold Spot exchange, Gold Deposit account, restructure of Gold Monetization Scheme, and a comprehensive Mines to Market gold policy. Furthermore, the government has welcomed digital payments and has furthered the initiative with Aadhar based cashless payments. The Gems and Jewellery industry was deeply stung by multiple issue in past years, this budget has many positives. We are hoping this budget will bring about the required confidence in the economy and benefit the industry in the long run.”
