(IBJA) feels that the upcoming budget should announce income tax benefits for individuals who trust invest in Gold Monetization Scheme (GMS) to bring down gold imports. GMS is aimed at unlocking idle gold of 22000 tonnes lying in Indian households.
Saurabh Gadgil, vice president, IBJA said that the upcoming budget should increase excise duty exemptions from Rs 1.5 crore to Rs 5 crore which will encourage small scale manufacturing and prevent black marketing. “Also gems and jewellery industry has sought special turnover tax regime for diamond industry, interest subvention to boost exports and PAN card requirement for transactions of above Rs 5 lakh instead of the current Rs 2 lakh in its wish list submitted to the finance ministry,” Gadgil said.
Gadgil said that the gems and jewellery sector is witnessing changes in consumer preferences due to adoption of western lifestyle. Consumers are demanding new designs and varieties in jewellery, and branded jewellers are able to cater to their changing demands better than the local unorganized players. Moreover, increase in per capita income has led to an increase in sales of jewellery, as jewellery is a status symbol in India.
“Based on its potential growth and value addition, the government has declared the gems and jewellery sector as a focus area for export promotion. The government has recently undertaken various measures to promote investments and to upgrade technology and skills to promote ‘Brand India’ in the international market and with this process India exports 95% of the world’s diamonds, as per statistics from the Gems and Jewellery Export promotion Council (GJEPC). The industry is projected to generate up to US$ 35 billion of revenue from exports in 2015,” he added.