Gems Retailers Advocate for Quota Over Duty Hikes on Gold, Silver
Jewellery retailers urge the government to impose quantitative restrictions instead of raising import duties on gold and silver. Current duty hikes drive domestic prices up, affecting small businesses and consumers. Retailers suggest encouraging recycling and monetisation schemes for existing gold reserves to ease the current account deficit.
On Wednesday, jewellery retailers voiced their concerns over the government's decision to increase import duties on gold and silver. They argued for quantitative restrictions as a more efficient alternative to tackle the current account deficit.
Industry leaders, such as PNGS Reva Diamond Jewellery CEO Amit Modak, believe that raising import duties leads to higher domestic prices, ultimately impacting small and medium-sized enterprises. They also stress the potential benefits of recycling old gold and formalising gold monetisation schemes.
With the import duty now at 15 percent, a significant policy shift is under discussion, driving calls for consumer-friendly programs to mobilise India's vast privately held gold reserves and ease forex pressure.
(With inputs from agencies.)
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