India's Budget on Lab Growns "Ignores Mined Diamonds"

(IDEX Online) - Diamond manufacturers in India are angry that calls to abolish a two per cent equalisation levy on natural diamonds were ignored in last week's budget.

Lab grown businesses will benefit from the scrapping of a five per cent import tax on the seeds from which diamonds are grown, as announced by finance minister Nirmala Sitharaman.

But mined diamonds, which account for 90 per cent of India's manufacturing, received no tax breaks.

Saiyam Mehta, chairman of All India Gem and Jewellery Council said: "The Union Budget has completely ignored other sectors of the industry while granting funds for the LGD sector."

Industry leaders had urged the government to axe the equalization levy, which applies to any Indian entity buying rough diamonds by any online method.

They'd also called for the import duty on cut and polished diamonds to be halved from five per cent, and for those on gold, platinum and silver to be reduced.