Budget 2018: Customs duty on diamonds doubled, jewellery exports to be hit

Social welfare surcharge adds salt to wounds, country's mission to global trading hub to take a major beating

In a move that will effectively quash the country's aim of becoming the world’s largest trading hub, Finance Minister Arun Jaitley on Thursday doubled import the duty on cut and polished diamonds, coloured gemstones and lab-grown diamonds including half-cut and broken pieces. The proposed duty rate is now 5 per cent, up from 2.5 per cent earlier.

Announcing Union Budget 2018, the Finance Minister also raised customs duty on imitation jewellery from 15 per cent to 20 per cent and imposed a social welfare surcharge of 10 per cent on import duty after withdrawing education cess. The overall effect: