Finance Minister Nirmala Sitharaman has introduced new measures aimed at enhancing India’s gems and jewellery sector. One significant change is the implementation of safe harbour rates for rough diamond purchases in Special Notified Zones (SNZs). This move seeks to streamline taxation and reduce unforeseen liabilities for international suppliers.
Moreover, Sitharaman announced reduced tax rates on precious metals: gold and silver will now be taxed at 6%, while platinum will face a 6.4% tax. Additionally, diamond sales will no longer be subject to the 2% equalisation levy, a step intended to promote sustainability in the industry.
During her Budget speech, Sitharaman emphasized India’s global leadership in diamond cutting and polishing, highlighting the sector’s significant employment of skilled workers. To further bolster this industry, safe harbour rates will be established for foreign mining companies selling raw diamonds in India.
Vipul Shah, chairman of the Gem and Jewellery Export Promotion Council (GJEPC), commended the government’s decisions. He praised the reduction in customs duty on gold and silver, the exclusion of the diamond sector from the 2% equalisation levy, and the simplified tax rules in SNZs for rough diamonds. Shah believes these measures will strengthen India’s position in the global gems and jewellery market.
