India Imposes 2% Duty on Polished Diamond Imports

The Indian government Jan 17, 2012 slapped a 2 percent duty on the import of polished diamonds. Industry sources told IDEX Online that the move would be good for the Indian diamond processing industry, as it would help boost the net exports of polished diamonds from India.

According to figures published by the Gem & Jewellery Export Promotion Council (GJEPC), in the first eight months of the current financial year beginning April 1, 2011, India exported $16.5 billion worth of polished diamonds, but also imported $10.9 billion worth of polished over the same period.

The impact of the duty on the domestic market is likely to be slight as India polishes most of what is consumes and only certain categories, particularly larger stones are cut elsewhere.

The Indian government has also changed the import duty on gold to 2 percent of value. Previously the tax was a flat Rs 300 ($5.9) per 10 grams. The import duty on silver was altered to 6 percent instead of the earlier Rs.1,500 ($29.6) per kilogram.