Union Budget 2017-18: GJF wants 5% import tax; PAN card limit to Rs 5 lakh

The Dollar Business Bureau

The gems and jewellery industry has urged the government to raise the mandatory PAN card limit to at least Rs. 5 lakh and reduce import duty on gold to at least 5% from its current 10% in the upcoming Union Budget 2017-18.  

"With the implementation of the PAN card limit of Rs 2 lakh, the industry has been facing serious challenges. Organised sector, which is growing by at least 2% every year since past decade is directly hit due to this. We request the government to bring the PAN card limit to the earlier level of Rs.5 lakh and above," All India Gems and Jewellery Trade Federation (GJF) Chairman Nitin Khandelwal told PTI.  

Khandelwal said the 10% import duty on gold bullion shipments has translated into wide scale gold smuggling and has also affected domestic retail and manufacturing industry. Bringing down duty to at least 5% will eliminate the grey market," he added.  

GJF has also pitched for Goods and Services Tax (GST) to be kept at 1.25% for the gems and jewellery industry to help the industry become compliant and organised.  

"Soon the entire nation will come under the single taxation regime of GST. We recommend GST at 1.25% for the gems and jewellery sector, as this will help the industry become compliant and organised," he said.

Khandelwal also opined that jewellers should be enabled to sell the Ashoka Chakra Gold coins, launched by Prime Minister Narendra Modi, as it will generate more sales of the coins.

He also welcomed the government's decision of mandatory Hallmarking and said that more new and upgradated Hallmarking centers should be set up across the country. 

"This is an important aspect to consider, since increasing the number of hallmarking centres with proper implementation of the Hallmarking process for gold will streamline the industry," he added.