GJEPC presents industry recommendations for upcoming budget

Seeks implementation of Presumptive Tax
GJEPC presents industry recommendations for upcoming budget

The Gems & Jewellery Export Promotion Council (GJEPC), the apex body of the Indian gem and jewellery industry has identified certain key areas which need the attention of the Union government in order to sustain the growth path of the Indian gem and jewellery industry. The GJEPC has put forth its recommendations for the forthcoming budget.

Mr Rajiv Jain, Chairman of GJEPC appealed to the government to remove tax related strangleholds that are preventing the industry from growing at a healthy and desired pace. Additionally, some of these issues are also creating conflict resulting in litigation and high cost of collection of income tax by the GIO.

A key issue the industry seeks is the implementation of the Presumptive Tax, which was recommended by the Sivaraman Committee in 2006, but the government failed to implement. Instead it introduced a Benign Assessment Procedure in 2007-08; which has not been successful for the industry, and the industry now seeks its withdrawal. The GJEPC recommended that the prescribed rate to be reflective of the reality in the diamond manufacturing and trading industry which is in the range of 1 percent to 3 percent.

Other recommendations include import duty reductions on Machineries, Worked Coral, Rhodium; Income Tax Exemption to all Export Promotion Councils; amendment in the Income Tax Act 1961-Trading in derivatives in specified stock exchanges will not be treated as “speculative transactions for the purpose of Income Tax Act; withdrawal of 1% Excise Duty on Branded Jewellery; to allow import of rough diamonds on consignment basis from mining companies like Alrosa, Debeers,etc, Reduction of Interest in export sector in Rs terms; and availability of Dollar financing to exporters.


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