2-fold hike in import duty to hit diamond trade, say exporters

The two-fold hike in customs duty on cut and polished diamonds will hamper India's chances of becoming an international diamond trading hub, jewellery exporters said.
Finance Minister Arun Jaitley in the budget 2018-19 doubled the import duty on cut and polished coloured gemstones, and diamonds to 5 per cent.
"This move hampers India's chances of becoming an international diamond trading hub. It does not provide India a level playing field vis-a-vis other peers such as Belgium, Dubai and Israel," Gem & Jewellery Export Promotion Council (GJEPC) chairman Pramod Agarwal said.
The finance minister in his Budget speech stated that exports will grow by 15 per cent this fiscal but the industry is awaiting clarity on the specific roadmap for achieving this growth, he added.

He demanded reduction in the basic import duty on gold, silver and precious metals.
Further, the chairman hailed the schemes and increased outlay for MSMEs as well as the initiative to create a database and identity for the micro, small and medium enterprises.

According to Vipul Jhaveri, Managing Partner, Deloitte India, the budget has addresses needs of MSMEs.
The promise of reducing corporate tax rate from 30 per cent to 25 per cent would benefit MSMEs, he added.
Most of the "MSMEs with turnover of upto Rs 250 crore would benefit from the rate reduction. Unfortunately, the large corporates will now carry a slightly higher tax burden from an increase cess of 1 per cent," he said.