- Jewellers declare they are not rushing to revise prices after import duty changes.
- The import duty changes are related to the introduction of VAT next year.
- The sector had a difficult year in 2016 as domestic customers stayed away.
Dubai and Sharjah are withdrawing their rebates on the 5% import duty imposed on jewellery. The import duty will now be on par with other gulf states. Industry experts told the Gulf News that the gold industry in the UAE already works on the lowest margins in the world and assured that showroom prices wouldn’t change anytime soon. Jewellers are also keen not to hurt customer sentiment in the run-up to DSF 2017, when 34 kg of gold are expected to be raffled.
Experts say the import duty rationalisation could be parts of efforts related to the introduction of a value-added tax (VAT) regime from 2018. This could boost domestic design and manufacturing of jewellery in the UAE.
The jewellery sector had a tough 2016 as domestic customers stayed away because of economic uncertainty. Jewellers are hoping that shoppers would return when the current volatility of gold prices subsides.
Last Updated 31, Mar 2018, 7:05 PM