DGFT considers increasing value addition norms for gold jewellery

Citing circular trading and rising false exports, the Directorate general of Foreign trade (DGFT) is considering increasing value addition norms for gold jewellery, reports say. The DGFT noted that the false export activities are more focused on heavy jewellery, reports say. The DGFT feels it is may be required to increase the value addition norms from the current 3 percent to 5 percent.

The government has in the past several months has raised gold import taxes and the RBI had levied the 80:20 ruling in which 20 percent of the gold jewellery imported had to be exported, reports say. These measures were taken up to curb India’s gold imports and the increasing current account deficit of the country, reports add. With increasing the value addition norms, it is felt that it would check the false exports and in turn curb gold jewellery imports, reports say.