Finance Minister Nirmala Sitharaman announced the implementation of safe harbour rates, offering fixed and favourable tax rates for rough diamond purchases within the country's Special Notified Zones (SNZs). This move simplifies the taxation process and mitigates unforeseen liabilities for foreign suppliers.
In addition, Sitharaman revealed significant tax reductions on precious metals: gold and silver will now have a tax rate of 6%, and platinum will be taxed at 6.4%. Furthermore, diamond sales will be exempt from the 2% equalisation levy, promoting sustainability within the industry.
"India is a global leader in the diamond cutting and polishing industry, which employs a substantial number of skilled workers," Sitharaman stated in her Budget speech. "To further support this sector, we will establish safe harbour rates for foreign mining companies selling raw diamonds in India."
Vipul Shah, chairman of the Gem and Jewellery Export Promotion Council (GJEPC), praised the government's decisions, stating, "The reduction of customs duty on gold and silver, the exclusion of the diamond sector from the 2% equalization levy, and the simplification of taxation rules in SNZs for rough diamonds will solidify India's leadership in the global gems and jewellery industry."
