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Dubai’s 5% import duty on gold may hit Indian exports

Dubai’s 5% import duty on gold may hit Indian exports

DUABI: Dubai has imposed a 5% import duty on gold, a move that is likely to hit India’s exports to the country, a report by The Economic Times, said. According to a report by Navbharat Times, the import duty is also extended to the import of diamond jewellery. The move by Dubai is likely to hit jewellery imports to the country at a time when sales have already taken a hit in the last one year. First it was the 1% excise duty that kept jewellers’ shutters down for over 40 days, then demonetization took demand away from the market as liquidity dried up, leaving the jewellers in a lurch.

The reports say that while the move will hit gold and diamond jewellery imports to Dubai, it may also help in bringing back demand for bridal jewellery to the country. Currently, a significant portion of demand for bridal jewellery goes to Dubai to take advantage of cheaper gold prices. However, the latest move by the country’s government may keep bridal jewllery shoppers here. Ashok Minawala, director, All India Gems & Jewellery Trade Federation, was quoted in the ET article as saying, “Over the years, Rs 4,000 – Rs 5000 crore of bridal jewellery purchase which shifts to Dubai can come back to India.”