The Coimbatore Jewellery Manufacturers Association has requested the Union government to refund taxes paid on gold metal loans taken before the recent reduction in Customs Duty.
In a memorandum submitted to the government, the Association pointed out that jewellery manufacturers in Coimbatore purchase around 100 tonnes of gold annually. Those who obtained gold metal loans from authorized nodal agencies were previously subjected to a 15% Customs Duty and GST. However, the recent budget reduced the Customs Duty to 6%. While the reduction was welcomed, it resulted in a loss of ₹5.53 lakh per kilogram of gold for the manufacturers. The Association is now urging the government to refund the additional duty paid.
The Association also called for a refund of 3% of the interest paid on loans to MSME jewellery manufacturers at the end of the year. Furthermore, they requested the establishment of a help desk in Coimbatore to promote jewellery exports and asked for the renewal of gold metal loans for a 360-day period.