Duty on Man-made Diamonds May Rise

The Union Ministry of Finance is mulling over a proposal to hike the import duty on man-made diamonds to 10 per cent in order to remove the price disparity with natural diamonds. This way the Government is looking at curbing the malpractices.

The price of man-made diamonds is cheaper than the natural ones to the tune of 30-60 per cent, which can be used to cheat the customers, says a news report. It is important to maintain the consumer confidence in the industry through separation of natural and man-made diamonds value chain and disclosures at every step.

In order to protect the interest of the natural diamond industry, it is necessary to consider customs duty on cut and polished synthetic diamonds at par with similar stones which is currently 10 per cent, says a report. Even, the GJEPC had time and again raised the concern with the government.

Besides, increasing the import duty on man-made diamonds, the ministry is likely put up a 5 per cent duty on rough synthetic diamonds, which are mostly grown in laboratories. Again, this is in regards to the request made by the GJEPC, the apex body has demanded transparent declaration and proper nomenclature for lab grown diamonds to protect the interests of natural diamond traders and sellers.

In the wake of increasing competition from China and Thailand in processing and polishing of coloured gemstones, the ministry is mulling to remove a 2 per cent import duty on cut and polished and coloured gemstones.