The Finance Ministry has exempted import of gold, silver bars and dore by jewellery exporters from the 2.5-per cent Agriculture Infrastructure and Development Cess. However, it maintains that the precious metal imported for domestic use will attract AIDC introduced this year in the Budget.
Colin Shah, Chairman, Gem and Jewellery Export Promotion Council, said the exemption of cess on exporters will have a positive impact on growth of the gem and jewellery exports and provide a big relief for the exporting community. The new cess has made jewellery exports unviable and uneconomical, he said.
The Budget had reduced import duty on precious metals to 7.5 per cent from 12.5 per cent but introduced an additional cess 2.5 per cent, which had muted the relief provided to the industry.