The Union Budget for the fiscal year 2019-20 is set to be tabled in Parliament on July 5, and with many proposals coming in from various sectors, the gem and jewellery industry also approached the government on Monday to put forth its proposal to reduce customs duty on gold, which at present is 10 per cent.

Vice-Chairman of All India Gem & Jewellery Domestic Council, Shankar Sen, said that recommendations have been sent to the Ministry of Finance for lowering customs duty on gold to four per cent. Talking with reporters in Kolkata, he also said that the reduction would keep a check on smuggling in a big way.

“We have done calculations and found that the resultant loss of government revenue will be compensated by reining in smuggling activities, which will become less attractive,” he said.

Another positive outcome would be lower prices of gold, Sen said.

The council has also urged the government to allow EMI purchases of jewellery, which the RBI currently does not allow, as gold is declared an asset class.

Sen added that the gem and jewellery body has suggested implementation of the gold monetisation scheme in a revised manner.

The council also said it will organise a two-day conclave ‘Manthan’ on July 2 and July 3 in Mumbai.

With Inputs From PTI