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NEW DELHI, Feb 28: India reduced custom duties on imports of gold and raw gem stones in its 2003-04 budget on Friday, a move industry officials said would boost jewellery exports and restrict gold smuggling.
The customs duty on gold bars and coins has been cut to a historic low of 100 rupees ($2.10) per 10 grams from 250 rupees, Finance Minister Jaswant Singh told parliament in his budget proposals.
The government also abolished customs duty on coloured, rough gem stones and semi-processed, half cut and broken diamonds. The import tariff on polished diamonds and gem stones has been cut to five per cent from 15 percent.
“The move will help India in emerging as a global trading centre for diamonds and jewellery,” Sanjay Kothari, chairman of the Gem and Jewellery Export Promotion Council, told Reuters.
He said it would now be viable for jewellery makers to import expensive, large-size diamonds and export them in the form of ornaments.
REFINED OIL: Jaswant also announced the imposition of an excise duty on branded and packed refined oil, while leaving the import duties on various edible oils unchanged.
The finance minister in his budget speech said the government would impose a “value-added” excise duty of eight per cent on refined oils and vanaspati, or hydrogenated oil.
Traders said half the country’s annual edible oil consumption of more than 11 million tons was in the form of refined and hydrogenated oils. They said domestic prices of refined oils would rise by around five per cent as a result of the new excise duty.
Local prices have already surged about 35 per cent in the past 12 months due to a fall in domestic oilseed production and firm global prices.
“The exercise will encourage the sale of unbranded and unpackaged oils, which may pose some health hazards to consumers,” said D N Pathak, executive director of the Indian Vegetable Oil Processors’ Association.—Reuters
