Gem and jewellery trade suggests measures to resolve current account

KOLKATA: In view of the the recent hike of import duty on gold from 4% to 6% and the likelihood of it being raised higher, the All India Gems and Jewellery Trade Federation (GJF) has come out with some recommendations to the government which will enable to curb the current account deficit and generate further foreign exchange for the country.

GJF has suggested a slew of measures that includes r educe import duty on gold and silver since consumption will not reduce by increasing duty. The trade body has also suggested to abolish transactions in ETF, gold mutual funds and similar instruments which increases the investment in idle gold.

The trade body is in favour of imposing c ommodity transaction tax and increase margins in gold and silver trading in commodity exchanges. GJF has also suggested to p ut idle gold lying with individuals and religious institutions to good use through voluntary disclosure scheme or issue of gold bonds to reduce imports. It has also suggested that tax collection at source should be applicable to purchase of coins and bullion in cash only and not on jewellery purchases.

Speaking on the occasion Mr Bachhraj Bamalwa, chairman, GJF said: ""We understand the government's concern but raining import duties will encourage smuggling. We would like to partner with the government to resolve the issue of current account deficit.""