In the current fiscal starting April 2017 in India, Gold Jewellery exports have dropped by over 6% in the last 8 months and is destined to further go down once UAE intorduces VAT [Value Added Tax]. Falling oil prices and escalating costs have compelled the UAE government to introduce VAT and at a time when the shopping season in Dubai and other emirates is at its peak. According to GJEPC figures, export of Gold jewellery has come down by 6% ie: Rs 14,733 Crores and with VAT there is a hanging fear of further down fall.

Dubai has always been a tax heaven for gold jewellery exporters from India for domemtic and reexport to other European and US economies. With the Introduction of VATin the UAE, other Middle Eastern countries such as Turkey, Iran etc would spring in surprises to garner the lost business of UAE in terms of Gold and Diamond Jewellery exports from India.

TNJ Bureau