Gem and jewellery export promotion council moots turnover tax

Mumbai, July 15 (UNI) The gem and jewellery export promotion council has urged the Central Government for introduction of turnover tax for jem and jewellery sector in the country on the lines of countries like Belgium, Thailand and Israel.

Talking to UNI on the sidelines of a seminar on 'New Diamond policy of China', the council's chairman, Bakul R Mehta, said that ''It will help simplify the process of imposition of tax on diamond trade.'' Also it is all set to help grow the industry in the country, he reasoned.

Currently we are producing 80 per cent of total diamond production in the world, but in terms of value, the figure was as low as 55 percent, he rued. Besides, the forthcoming step was likely to generate economic buoyancy in the field of diamond business of the country, he reasoned. Moreover, it would encourage the foreign traders to open their shops in the country and thus giving a boost to the diamond industry here, he added.

Talking about the recent decision taken by the Government of China to reduce the VAT from prevailing rate of 17 per cent to four per cent on finished and zero per cent on rough diamond, he said, it was not likely to affect much the Indian diamond merchants for a simple reason that the VAT prevailing in India on both finished and rough diamond was merely one per cent and that was still lower than the revised VAT in China.

However, he hoped that keeping in view the excellent finishing and processing works being done by the diamond cutting units in China, the Indian jewellers have now started thinking positively to establish their units in the neighbouring country.

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