Centre exempts gold imported by Jewellery Exporters from Agri Cess

Imports of gold, silver bars and dore by jewellery exporters from the 2.5 percent Agriculture Infrastructure and Growth Cess is exempted by the Ministry of Finance.

It retains that the AIDC adopted in the budget this year would attract precious metals imported for domestic use.

Colin Shah, Chairman of the Gem and Jewellery Export Promotion Council, said the cessation exemption for exporters would have a positive effect on the growth of exports of gems and jewellery and would provide the exporting community with significant relief.

The new cess made exports of jewellery inviable and uneconomical, he added.

The Budget lowered the import duty on precious metals from 12.5 per cent to 7.5 per cent, but imposed an extra cessation of 2.5 per cent, which silenced the industry's relief.