Import duty on cut and polished diamonds and gemstones would be reduced to 5%, while duty on sawn diamonds will be abolished, according to Finance Minister Nirmala Sitharaman.
Import duties on cut and polished diamonds, as well as gemstones, are currently 7.5 percent.
Sitharaman declared in the Lok Sabha while presenting the Budget for 2022-23 that the government will make it easier to export jewelry through e-commerce by implementing a “simplified regulatory framework” by June this year.
”To give a boost to the gems and jewellery sector, the customs duty on cut an polished diamonds and gemstones is being reduced to 5 per cent. Simply sawn diamond would attract nil custom duty,” the FM said.
To disincentivize import of undervalued imitation jewellery, the customs duty on imitation jewellery is being prescribed in a manner that a duty of at least Rs 400 per kg is paid on its import, she added.