Jewellers welcome clarity on gold imports

Gold jewellers and jewellery bodies have welcomed the Reserve Bank of India’s clarification pertaining to nominated banks and agencies being allowed to import gold.

Pankaj Parikh, Vice-Chairman, Gem & Jewellery Export Promotion Council (GJEPC), said “it is a relief, but one wonders why it took so long to be announced. The fact that the remittance for exported gold has to come in to avail of the next lot of imports is by far the best solution.”

Welcoming the clarification, Haresh Soni, Chairman, All India Gem & Jewellery Federation, said “it will certainly benefit the jewellery industry, which is starved of gold supply and should lead to lowering of premia, smoother distribution and reduction of monopolies and gold smuggling.”

Industry for cut in duty Mr. Soni said the prevailing 10 per cent premium on gold on top of the 10 per cent import duty and 1 per cent VAT was very high.

Suresh Hundia, President Emeritus, Bombay Bullion Association, felt there was a need to reduce the import duty as the ‘hawala’ trade differential was 6 per cent and a cut to 5 per cent would ‘dis-incentivise’ smuggling. “The duty needs to be at 2-5 per cent,” he said.