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Imagine getting tax breaks for buying jewellery. Well that's what the Gems and Jewellery Export Promotion Council (GJEPC) is pitching for.
“Providing tax exemption will encourage women to spend more on jewellery. It will also help divert rising investments in gold bars, medallions and coins to jewellery,” said Mr Rajiv Jain, Chairman, GJEPC. He was speaking at the 5th International Gold Summit, organised by Assocham.
GJPEC is expected to submit its recommendations to the Government in this regard soon. The move comes at a time when gold prices are scaling new highs.
Such a move would also help trigger greater value addition, create more jobs in the process, besides increasing the intrinsic value of jewellery as it is passed on to the next generation, Mr Jain said.
Imports, exports
India, the world's largest consumer of the yellow metal, imported 933 tonnes of gold worth $59 billion in 2011-12.
The gems and jewellery sector accounted for 14 per cent of the country's total merchandise exports of $303.7 billion in 2011-12. The exports stood at $16.51 billion in 2011-12, a 28 per cent growth over the previous year's $12.88 billion.
Gold jewellery forms 40 per cent of the total gems and jewels export basket, while cut and polished diamonds account for 57 per cent.
Mr Jain expects India's overall gems and jewellery exports to remain flat in 2012-13. This is mainly because of an anticipated decline in exports of cut and polished diamonds due to the recent levy of 2 per cent import duty on diamonds, he said.
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