Government Increases Gold Hallmarking Fees by 67%, Sparks Industry Backlash

In a move that has stirred significant controversy, the Union government has raised the hallmarking fee for gold articles by a staggering 67%. The new fee, effective immediately, will see the cost rise from Rs 45 to Rs 75 per article. This adjustment comes as the country prepares for the festive season, a period when gold purchases typically surge.

The hallmarking process is crucial for ensuring the purity and quality of gold articles, with the Bureau of Indian Standards (BIS) responsible for certifying these attributes. By affixing a hallmark, consumers gain the ability to verify the jeweller’s claims regarding the metal’s purity, aiding them in making informed purchasing decisions. The BIS functions under the aegis of the Ministry of Consumer Affairs, and the recent fee hike has raised eyebrows across the jewellery sector.

Under the revised framework, recognised jewellers will be required to pay Rs 75 for each gold article, along with a minimum fee of Rs 200 per consignment. This stipulation implies that even if the calculated fee for a consignment amounts to less than Rs 200, jewellers will still need to remit the minimum charge. On the other hand, the hallmarking fee for silver articles has been set at Rs 35, with a minimum consignment charge of Rs 150.

The All India Gem and Jewellery Domestic Council (GJC) has voiced strong opposition to the fee increase. The organisation has urged the government to reconsider this decision and maintain the previous fee structure until a thorough consultation with stakeholders can take place. While GJC representatives have clarified that their opposition is not towards hallmarking itself, they express concern over what they describe as a drastic increase in operational costs.

This fee hike could significantly impact the jewellery sector, particularly during a time when consumers are expected to purchase gold for various festivals and wedding ceremonies. The GJC, representing a significant portion of the jewellery industry, is advocating for a collaborative approach where the interests of both the government and the industry can be aligned. As discussions continue, the outcome may influence both consumer purchasing behaviour and the operational dynamics within the jewellery market.

Source: scroll.in