Budget 2015: Commerce Ministry seeks cut in gold import duty

NEW DELHI: With a decline in gold imports, Commerce Ministry has sought reduction in import duty on gold, a step that could boost exports and manufacturing of gems and jewellery.

"We have been asking for a cut in gold import duty," Commerce Secretary Rajeev Kher told reporters here on the sidelines of a CII function.

In its Budget proposals, the Ministry has suggested the Finance Minister to consider reduction in import duty on the yellow metal.

The industry has sought reduction in customs duty on gold to two per cent, from 10 per cent now.

The gems and jewellery sector, which employs about 3.5 million people, would get a boost from the move.

Gold imports in December declined sharply to 39 tonnes, from 152 tonnes in November. Exports of gems and jewellery too declined by 1.2 per cent year-on-year to USD 2.66 billion in December.

The sector is one of the 25 thrust areas identified under the 'Make in India' programme. The campaign aims at attracting domestic and foreign investments to boost manufacturing and create jobs.

The government had raised the import duty on gold to contain the widening current account deficit.

Source : economictimes.indiatimes.com