GJEPC bets on policy changes to boost exports

With the intention to increase exports of gems and jewellery to US$ 70 billion in the next 5 years, the Gem and Jewellery Export Promotion Council of India (GJEPC) has sought a reduction in import duty on cut and polished diamonds to 2.5% from the current 7.5%. It has also proposed for an amendment in taxation provisions to enable the sale of rough diamonds in Mumbai’s Special Notified Zone (SNZ). Among other things, it also requested an exemption and clarification of 2% equalisation levy on rough diamond sales

“We have the capability to sustain this position and further scale new heights. We have requested the finance minister that if customers in India choose to confirm their orders, an invoice can be made within the SNZ. Miners could pay a ‘turnover tax’ not exceeding 0.16 per cent (the prevailing rate in Belgium),” GJEPC chairman Colin Shah stated.

Shah asserted that “Already, due to the challenges brought in by the pandemic, the industry has faced heavy loss of exports and now followed by additional 2 per cent EL tax is unfair to the industry. In our last meeting with finance minister, we had proposed to remove it and we are hopeful that it will be amended soon.”  He also added that COVID-19 has forced the industry to go digital.