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Gems, jewellery urges govt to reduce gold duty to 4%

Press Trust of India  |  Mumbai 

Looking to give a positive push to the and sector, industry body has urged the to reduce the import duty on gold to 4 per cent and also address issues under the regime in the coming Budget.

"Lowering the duty to 4 per cent from 10 per cent will not only boost customer demand and uplift business sentiment for the trade, but also help industry become more organised and compliant," All and Trade Federation (GJF) said in the representation to the

The reduction in import duty will also help in the fight against black money, he added.

The 10 per cent duty on gold was levied to curb current account deficit (CAD), however, the country's trade deficit narrowed more than expected to USD 12.96 billion in June, he said.

Further, Khandelwal said, there are some issues under the current regime, which is hampering the industry that the needs to look into.

He said, under inter-state supply of services by job workers (karigars) who are unregistered, that is, having turnover below 20 lakhs in a financial year should be allowed.

"Retail customers are reluctant to share their residence address, so we request the government to increase the invoice value to a minimum of 2,00,000 from the current Rs 50,000," he further added.

The industry body also asked the government to increase the cash purchase limit to at least Rs 1,00,000, which is kept at Rs 10,000.

Further, Khandelwal said, the government should enable jewellers to sell Ashoka Chakra Gold coins through their retail stores, which will increase the reach and generate more sales of the coins.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, January 12 2018. 18:10 IST