Business

Surat: There will be more capital jam for exporters: This is also expected to impact wedding purchases

Disappointment among jewelers due to increase in import duty on goldincreased concern

There is disappointment among jewelers on the increase in import duty on gold by the central government. In the coming days, the purchase of festivals and marriage is going to come out in the country, only then the purchase will be affected due to the cost of gold. On the other hand, exporter jewelers also say that their surplus capital will now be stuck for two-three months.

The central government has decided to increase the import duty on gold. Consequently, the import duty on gold has been reduced from 7.5 per cent to 12.5 per cent with effect from June 30. Jewelers across the country are worried about this. Jewelers say that this move of the government is likely to increase smuggling. Earlier this fee was 12.5 per cent, but it was reduced to 7.5 per cent. It has been extended again. Although

Local jewelers say that the increase in import duty on gold will also lead to a rise in jewelery prices. Rakshabandhan in the coming days and after Diwali in the coming months marriage is likely to have an impact on the jewelery business. While gold jewelery exports are in deficit.

Taxpayers say that exporters get tax refund, but due to increase in tax, the additional capital from their government will be blocked for three months. For example, a total of 7,20,000 will have to be paid on one kg of gold including tax, GST and cess. Which is refundable after 15-20 days of receipt of payment after manufacturing and exporting gold ornaments. But now due to 12.5 percent fee, the amount of about 9 lakh rupees will be blocked. At present, there is already a cash crunch due to the recession, only then due to blockade of large amount for a long time, the entrepreneurs will suffer in the long run.

Buying power will decrease, buying can go ahead

By increasing the import duty on gold from 7.5 percent to 12.5 percent, there will definitely be an increase in the prices of gold, which will have a direct impact on the customers. Customers who are planning to buy 100 grams of gold ornaments will now have to pay Rs 10 to 15 thousand more. Many customers may reduce their purchases due to the expectation of lower prices in the coming days and many customers may postpone their purchases at this time to the future. In such an environment, there will be less buying and selling, which is likely to slow down the market. Rushbhabhai Sanghvi (Rajratan Jewelers)

There will be less subscription in the market, there will be an impact on the industry

Everyone’s budget will be disrupted if gold becomes expensive. People who shop on normal days can stop shopping. Apart from this, buyers will also make less jewelery as per their budget for the upcoming festivals in the days to come. The increase in duty will affect the jewelery industry. At a time when the jewelery industry is going through a slowdown, it was necessary to keep the duty rates unchanged. , Nainesh Pachchigar (President of Gujarat, India Bullion Jewelery Association)

Need to encourage jewelery industry

Import duty on gold has been increased from 7.5 percent to 12.5 percent. Which will have an impact on the jewelery industry. With the increase in duty, jewelery will become more expensive. Entrepreneurs will have to invest more for this, the jewelery industry needs to be promoted. – Nilesh Bodki, businessman

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Shivam Bangwal

Shivam Bangwal is an Indian based entrepreneur who is a tech, travel and coding enthusiast with a post graduation degree on Master's of Computer Applications. He is a founder of Youthistaan, People News Chronicle, Hitchhike TV, Branding Panther and many more.
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