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Higher Indian Import Duty on Polished Diamonds Could be Damaging
Nov. 01, 2013 12:26PM PST
Gem InvestingIn its weekly report, Rapaport described the news that India is thinking of raising its import duty on polished diamonds from 2 to 5 percent as a “stunning development,” noting that doing so would be “shortsighted and damaging to the trade.”
In its weekly report, Rapaport described the news that India is thinking of raising its import duty on polished diamonds from 2 to 5 percent as a “stunning development,” noting that doing so would be “shortsighted and damaging to the trade.”
As quoted in the market news:
Raising the import duty on polished diamonds would be the proverbial nail in the coffin. At the very least, it would be an ill-advised Diwali gift to the industry. Instead, GJEPC [the Gem and Jewellery Export Promotion Council] should be lobbying the government to reduce the duty to encourage a healthy, competitive diamond market. At a minimum, the council should endorse maintaining the status quo in a strong statement to its members to ease their concerns.