Jewellers hope for cut in import duty

Updated - February 28, 2015 08:39 am IST

Published - February 28, 2015 08:31 am IST - CHENNAI:

Jewellers think prices will come down after the budget . Photo: K.V. Srinivasan

Jewellers think prices will come down after the budget . Photo: K.V. Srinivasan

With Union Budget 2015 -16 round the corner, expectations are running high among jewellers that a cut in import duty will be implemented.

One gram of 22-carat gold was priced at Rs. 2,516 on Friday. The price has been oscillating between Rs. 2,500 and Rs. 2,600 for the past fortnight. Several jewellery shops are also witnessing a drop of 25 per cent in sales as people wait for a decrease in price.

Jewellers believe that following budget announcements, prices will fall further as the import duty may be brought down. N. Ananthapadmanabhan, regional chairman of All India Gem and Jewellery Trade Federation, said: “Gold may cost a minimum of Rs. 100- Rs. 120 lesser. We expect the import duty to decrease from the present 10 per cent to 6 per cent. This way, smuggling of precious metal can also be curbed.”

Members of the federation had earlier petitioned Union Ministers, seeking a cut in import duty. Giving priority to the gem and jewellery industry and the goldsmiths, who are backbone of the trade, is another demand that jewellers have. Subsidies and schemes to encourage the skilled labourers and ensure better livelihood must be part of the budget, they said.

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