Finance Minister Nirmala Sitharaman
Budget 2025: Preparations for the general budget are going on. Finance Minister Nirmala Sitharaman will present the budget on 1 February. Before the budget, people associated with different sectors are meeting the Finance Minister and presenting their demands. In this series, the gems and jewelery sector has urged the Finance Minister to reduce the Goods and Services Tax (GST) on revenue to 1% in the upcoming budget to reduce the cost burden on the industry. We want tax rationalization and availability of finance to support business, Rajesh Rokade, chairman of All India Gems and Jewelery Domestic Council (GJC), said in a statement on Tuesday.
Will help in reducing the price of gold
He said that the current rate of GST along with the ever increasing prices of gold is becoming a burden for the industry and end customers. Therefore, GJC is urging to reduce GST from the current three percent to one percent in the upcoming budget, which will boost compliance, Rokade said. He said the tax reduction will increase affordability of consumers, especially in rural areas, and most importantly, improve revenue collection by increasing the size of the formal economy. The apex industry body said there is a need to introduce concessional GST rate for lab-grown diamonds, to fully recognize their sustainable and cost-effective qualities compared to natural diamonds.
Currently 3% GST is levied on diamonds
Currently, the same GST rate is applicable to both natural and lab grown diamonds. GJC urged the government to create a dedicated ministry and appoint state-wise nodal offices and a Union Minister specifically for the jewelery sector. GJC Vice Chairman Avinash Gupta said, we request the government to consider EMI for jewelery which has been a long standing demand of the industry. The gold monetization scheme also needs reform as it has the potential to bring out idle domestic gold in the economy and thus help us become self-reliant and import less.
Omar Abdullah met Finance Minister Sitharaman
Jammu and Kashmir Chief Minister Omar Abdullah on Tuesday met Union Finance Minister Nirmala Sitharaman for pre-budget consultations. The meeting at Sitharaman’s North Block office lasted for more than 30 minutes and was ‘cordial’, officials said. The Finance Minister will present the Union Budget for the financial year 2025-26 on February 1. She is discussing with various parties in this regard. This is the second meeting of the two leaders within two months. Abdullah had also met Sitharaman in November after taking over as the Chief Minister of Jammu and Kashmir.
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