Budget Session begins today!
Gem-n-Jewellery industry looks closely!
Addressing floor leaders of parties in the Rajya Sabha and Lok Sabha here today, ahead of the Budget Session 2018 of Parliament beginning tomorrow, Prime Minister of India, Shri Narendra Modi said that Government gives huge importance to the issues raised by all Political Parties and exhorted all Political Parties to collectively strive to create a constructive atmosphere in Budget Session to achieve National Good.
Further, Shri Modi encouraged all political parties to prevent tokenism in different Standing Committees of the Parliament and play a more constructive role to give concrete solutions to issues of national importance brought before the Committees. The Prime Minister urged all the leaders present to develop the Committee system of Parliament as a role model of Participative Democracy that may be adopted across State Legislatures in India.a
Shri Ananthkumar further informed that the Budget Session 2018 of Parliament is scheduled to be held from Monday, 29th January, 2018, and subject to exigencies of Government Business, the Session may conclude on Friday, 6th April, 2018. During this period, both Houses of Parliament will be adjourned for recess on Friday, 9th February, 2018 to reassemble on Monday, 5th March, 2018 to enable the Standing Committees to examine the Demands of Grants of various Ministries/ Departments and make their reports thereon.
The Minister said that the Session will provide a total of 31 sittings (8 sittings in First part and 23 sitiings in the Second part) spread over a period of 68 days.
In the row gem-n-jewellery industry is closely looking at the Budget! The industry & trade is expecting to grow more export & vibrant domestic.
1: First concern is introduction of turnover linked Presumptive tax on sale of rough diamonds at Special Notified Zone (SNZ). As of today viewing & display is carried on yet sales activities are at halt!
2: Reduction of duties on polished diamonds imported by Russia could also help and needs to be negotiated in bilateral meetings.
3: Introduction of a Job Work Policy for Indian Gems and Jewellery Sector while Industry players in the competing countries are able to operate under a model. There is no such enabling policy in India for such a job work model for diamonds which needs to be introduced.
4: Differential duty for lab grown diamonds is needed. A differential rate of import duty to create differentiation at import level is needed between natural diamonds and manmade(lab grown) diamonds instead of levying zero duties for both as at present.
This will stop undisclosed mixing. Higher duties can also be levied on polished lab grown diamonds compared to rough lab grown diamonds. For this separate ITCHS codes are necessary.
5: Abolition of import duty on machinery used for detecting synthetic diamonds is much needed. India being the largest cutting & polishing centre has the highest number of detection machines to protect its leadership status and image in the world diamond industry & exports.
To differentiate between natural diamond and manmade diamond GJEPC has set up Diamond Detection and Resource Centres in Surat and Mumbai with latest detection machines. The basic customs duty of 7.5 % on important synthetic diamond detecting machines could be reduced or made zero.
In a Pre-Budget expression Saurabh Gadgil, VP-IBJA said, “We are expecting a cut in import duty and a reduction in GST from the upcoming union budget. The influx of GST has benefited organized jewellery brands and a further reduction in the same would only boost the trade. With the advent of the wedding season, the customer sentiment is extremely positive, and the demand is only expected to rise in the coming quarters.
A reduction in import duty will largely benefit the customers, it will increase the demand of gold and gold jewellery and it would also curb gold smuggling and control sales in parallel markets. We are also expecting that government can make a provision for official ministry for the gems and jewellery sector, the industry contributes a great deal to the GDP of the country and also generates immense employment opportunity.
Furthermore, it is one of the potent sectors that works beautifully under the realm of the Make in India campaign.”
