Import duty on cut and polished diamonds and gemstones will be reduced to 5 per cent while on sawn diamond to nil in order to boost the sector, Finance Minister Nirmala Sitharaman said on Tuesday.
At present, import duty on cut and polished diamonds as well as gemstones is 7.5 per cent.
Presenting the Budget for 2022-23 in the Lok Sabha, Sitharaman also announced that the government will facilitate export of jewellery through e-commerce for which it will implement a "simplified regulatory framework" by June this year.
"To give a boost to the gems and jewellery sector, the customs duty on cut an polished diamonds and gemstones is being reduced to 5 per cent. Simply sawn diamond would attract nil custom duty," the FM said.
To disincentivize import of undervalued imitation jewellery, the customs duty on imitation jewellery is being prescribed in a manner that a duty of at least Rs 400 per kg is paid on its import, she added.
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