Stating that there is an unhealthy disposition towards the gems and jewellery sector, Dr C. Vinod Hayagriv, Managing Director, C. Krishniah Chetty & Sons on Monday said that it is time for government to issue a healthy direction to this sector. Below are his expectations from the upcoming Budget 2017 for the sector:
1) Let the government not paint entire industry with one big brush. There are fine gems within the sector. Let the best be given the adequate encouragement and the sector will translator, quickly.
2)Reduce import duty on gold to 4%-5% from current 10%.
3) Remove PAN card requirement for cheques/ DD/bank transfers and better still make an even playing ground for all in the country by mandating PAN card requirement for each and every transaction over Rs 1000/- (not just gems and jewellery or real estate but for ALL transactions) – Meaning do not have this part PAN card requirement that divides the industry into unequal footing.
4) A strong measure is required to remove corruption which still exists even after demonetisation. Need stronger measures for making better transparency. Now is the time. If not the country will suffer more.
5) Reduce import duty on scientific/ testing/ equipment used in gems and jewellery sector to 12% from current 28%.
6) Maintain GST at special slab of 1-2% only.
7) Amend company law for private companies not mandating current 2% of net profits towards charitable causes. Profits of Indian companies need to improve to allow for this.
8) Reduce maximum corporate and personal income taxes by a minimum of 5% from current levels.
9) Allow or mandate banks to lower interest costs.
10) Encourage zero interest loans for education to improve skills of our younger population as we see educated people but not fit to work yet.