Union Budget 2022: FM gives boost to gems and jewellery sector; reduces import duty on cut & polished diamonds, gemstones to 5%

In a bid to boost the gems and jewellery sector, Finance Minister Nirmala Sitharaman in the Union Budget 2022 announced a reduction of customs duty on cut and polished diamonds and gemstones. The import duty has been cut to 5% from the current 7.5 percent.

“Simply sawn diamond would attract nil custom duty," the finance minister said.

To facilitate the export of jewellery through e-commerce, the finance minister announced that a simplified regulatory framework shall be implemented by June this year.

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To disincentivise import of undervalued imitation jewellery, the customs duty on imitation jewellery is being prescribed in a manner that a duty of at least ` 400 per Kg is paid on its import, she said.

All India Gem and Jewellery Domestic Council Chairman Ashish Pethe said, "Overall the Budget 2022-23 seems positive but there is nothing specific for the industry in this Budget except the cut in customs duty on cut and polished diamonds and sawn diamond, which is positive for the industry."

"The Budget emphasis on increasing rural economy will indirectly help the gem and jewellery industry," he added.