Dubai imposes 5% import duty on gold jewellery

Gold and diamond jewellery imports into Dubai will now be dearer following Dubai imposing a 5 percent 5% import duty, as per reports. This is expected to enhance and encourage jewellery design within Dubai as it would discourage the dependence on imported gold and diamond jewellery. Also, the imposition is being viewed as a precursor to the introduction of a value added tax regime in Dubai, as per executives, reports say.

Dubai’s gold jewellery demand is met to a great extent with jewellery from India and this imposition of the import duty would dampen sentiments of Indian jewellers, as per reports. The Indian designs and craftsmanship have been much hailed in Dubai and therefore attracted buyers. Also, buyers prefered buying gold jewellery from Dubai owing to cheaper gold prices but this move could curtail the same. On a positive note, it may bring back bridal jewellery sales to India. Reports further suggest that the import duty is being applied towards gold jewellery imported into Dubai for local demand according to some opinions.