Given the various issues plaguing the Gems and Jewellery Industry and the recent hike of import duty on Gold from four per cent to six per cent and the likelihood of it being raised higher, the All India Gems and Jewellery Trade Federation (GJF) understands the Government’s concerns and have come out with some positive recommendations to the government which will enable to curb the Current Account Deficit and generate further FOREX for the country and at the same time highlight the budget recommendations for Budget 2013-14.%%% GJF’s Recommendations to the Government on the various below mentioned issues: % · Reduce Import Duty on Gold and Silver, since consumption will not reduce by increasing duty.%% · Abolish transactions in ETF, Gold mutual funds and similar instruments which increases the investment in idle gold.%% · Impose Commodity Transaction Tax and increase margins in gold and silver trading in commodity exchanges.%% · Put idle gold lying with individuals and religious institutions to good use through Voluntary Disclosure Scheme or issue of Gold Bonds to reduce imports.%% · Removal of Excise Duty on Unbranded Articles of Precious Metals during the period of March 2011 to 16th March 2012 which is unintentional.%% · Tax Collection at Source (TCS) should be applicable to purchase of coins and bullion in cash only and not on jewellery purchases. · Abolish Wealth Tax on Gems & Jewellery to encourage people to bring it in their books for fear of Wealth Tax.%% · The Prevention of Money Laundering Act Amended 2012 designed for National Security needs to be reviewed as it is singling out Gems & Jewellery industry and will make it impossible to operate, as international laws cannot be applied to our country as it will jeopardize the industry.%% · Protection of Domestic Jewellery manufacturing Industry from cheap imports under FTA agreement with Thailand is required as it will hamper the local fabric of manufacturing in India. %% · Hand Baggage rules on Customs duty for Gold brought in by NRI returning after 6 months should be charged at same rate as gold imports.%% · Unlock Hidden Reserves of Gold Jewellery in the Country by allowing Jewellers to receive gold deposits from consumers, as this will lead to lesser requirements of Gold from the market leading to lesser imports. %%% Further Issues affecting the sector like Hallmarking Gold, Excise Duty Provision on Branded Jewellery, and Prevention of the Anti-Money Laundering Act would also need to be addressed by the government on an urgent basis.%% Speaking on the occasion Bachhraj Bamalwa, Chairman – All India Gems and Jewellery Federation said “We understand the Government’s concerns but raising import duties will encourage smuggling and income generated from these activities may be used for illegal activities that can threaten national security. There are and which have been accumulated for a long time. We would like the government to consider several such issues that have been affecting the gems and jewellery sector and we would like to partner with the Government to resolve the issue of the Current Account Deficit and the Balance of Payments situation of the economy. We therefore urge the Government to the allow us to put forth these recommendations that will bring in a positive effect in the economy.”