The gems and jewellery industry has sought a substantial reduction in the quantity of gold that NRIs are allowed to bring into the country, saying that the move will help check illegal imports.
“The federation recommends reducing this quantity (that NRIs bring in) to 1 kg from 10 kg, aimed at stopping illegal import of yellow metal in India,” the Gems and Jewellery Trade Federation Chairman, Mr Bachhraj Bamalwa, said here today.
At present, Non-Resident Indians (NRIs) returning to India after six months are allowed to bring in 10 kg of gold which is worth about Rs 3 crore.
Besides, Mr Bamalwa said there is a need to bring the duty on gold imported in hand baggage by NRIs at par with Customs duty levied on imports of yellow metal.
The Customs duty on imports of gold and silver is 2 per cent and 6 per cent, respectively, of the value. Duty on gold and silver imported by NRIs in hand baggage is Rs 300 per 10 gram and Rs 1,500 per kg, respectively.
The Government has recently notified the import duty on gold and silver as the old rates were fixed 4-5 years ago. In the last few years, bullion prices have increased substantially and the change has been made to bring duties in line with market prices.
Further, the federation said there is a need to abolish the one per cent excise duty imposed on branded jewellery to make the gems and jewellery sector more competitive.