Re­view in­cen­tives to gems & jew­ellery sec­tor to check round-trip­ping: CAG

The Financial Express - - ECONOMY -

THE Comptroller and Au­di­tor Gen­eral (CAG) on Fri­day asked the gov­ern­ment to re­view ex­port in­cen­tives to gems and jew­ellery sec­tor to safe­guard rev­enues and pre­vent round-trip­ping.

The CAG also asked the Depart­ment of Com­merce to un­der­take an out­come anal­y­sis of the im­por­tant schemes im­ple­mented to boost the G&J sec­tor from an eco­nomic, trad­ing and rev­enue per­spec­tive.

All in­verted duty struc- tures, trans­ac­tion costs, re­lated party trans­ac­tions, re-ex­port trans­ac­tions, fa­cil­i­ta­tion mea­sures need to be care­fully re­viewed be­fore de­sign­ing an ef­fec­tive pro­mo­tional scheme, it said.

In its per­for­mance au­dit re­port tabled in Par­lia­ment to­day, CAG asked the Depart­ment of Com­merce to re­view “ex­port in­cen­tives al­lowed on G&J ex­ports, prod­uct cat­e­gory and coun­try wise, con­sid­er­ing the vol­ume and value of re-im­ports in­volved, to safe­guard the in­ter­est of rev­enue and to pre­vent round trip­ping”.

Fur­ther, it asked the Cen­tral Board of Ex­cise and Cus­toms (CBEC) to con­sider ra­tio­nal­is­ing the duty struc­ture so that For­eign Ex­change Earn­ing could at least be at par with duty fore­gone un­der the For­eign Trade Pol­icy (FTP).

The G&J in­dus­try con­trib­utes 15% to the ex­port bas­ket. The ma­jor prod­uct cat­e­gories of this in­dus­try are gold and diamond jew­ellery. In­dia's diamond man­u­fac­tur­ing sec­tor em­ploys about 10 lakh peo­ple across the coun­try.

The CAG re­port on cus­toms on gold, pre­cious met­als and jew­ellery points at its per­for­mance au­dit has a rev­enue im­pli­ca­tion of Rs 1,003.37 crore in ad­di­tion to sys­temic is­sues worth Rs 19,522.67 crore and in­ter­nal con­trol mat­ters which could not be quan­ti­fied.

The im­port of gold, jew­ellery and re­lated items in­creased from Rs 3.50 lakh crore in 2010-11 to Rs 3.81 lakh crore in 2014-15. Ex­port of sim­i­lar goods also in­creased from Rs 1.98 lakh crore in 2010-11 to Rs 2.53 lakh crore in 2014-15.

“The ex­port growth in 201415 was much be­low the rate of 25% en­vis­aged in the Depart­ment of Com­merce (DOC) strat­egy, af­fect­ing em­ploy­ment gen­er­a­tion and other eco­nomic in­di­ca­tors,” the re­port said. PTI

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.