Rajasthan: Gem & jewellery industry frets over new tax by US on exports

The proposal of theUnited States Trade Representative(USTR) to impose retaliatory tariffs on 41 Indian products including 17 items in thegemand jewellery category has worried the exporters who are yet to recover fully from the Covid blows.

The representatives in the state said if the proposals go unchallenged and get implemented, the gem and jewellery industry will have a crippling impact as the US has proposed to levy tariffs up to 25% on the products.

Last year, India levied an equalisation tax on ecommerce companies that have no physical operation in the

country. The 2% digital service tax (DST) on purchases through these companies came into effect from April 2020. The Indian government is currently examining the USTR proposals and may knock the doors of the WTO if it is levied. The USTR list includes other products like shrimps, basmati rice, bamboo items, wood furniture, and cigarette paper, etc.