Gold & Jewellery Industry Demands Tax, Duty Reforms in Budget 2026 Amid Price Surge
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News18•31-01-2026, 15:43
Gold & Jewellery Industry Demands Tax, Duty Reforms in Budget 2026 Amid Price Surge
- •Gold prices surged over 90% in the past year, driven by US dollar debasement, central bank hoarding, and geopolitical tensions, making it a strong-performing asset.
- •High demand led to a 27.4% year-on-year rise in gold imports in FY25, with gold becoming a major import item after petroleum crude.
- •The current effective duty on imported gold is 6%, reduced from 15% in Budget 2024-25; the industry expects further tweaks in Budget 2026.
- •Industry experts recommend rationalizing the tax framework for different gold investments (physical, ETFs, SGBs) and reviewing the 3% GST on physical gold to stimulate demand.
- •The Gem and Jewellery Export Promotion Council (GJEPC) and All India Gem and Jewellery Domestic Council (GJC) are pushing for reforms including lower Safe Harbour tax, rationalized import duties, and GST reduction to 1.25%.
Why It Matters: The gold and jewellery industry seeks significant tax and duty reforms in Budget 2026 to boost growth.
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