Uncertainty over tax laws is creating hurdles in ease of doing business, says GJEPC Chairman

“Uncertainty over tax laws has been the main hurdle in ease of doing business. It has creating troubles for the Indian jewellery exporters. Currently, we are at the 4th spot, but if the government doesn’t pay heed to the industry voices then the country’s dream to own the top spot in being the largest jewellery exporters would remain a dream,” pointed out Praveenshankar Pandya, Chairman, GJEPC, as he was discussing industry’s export performance during FY 2015-16.

The Gem and Jewellery Export Promotion Council (GJEPC), today, announced country’s Gems and Jewellery industry’s annual performance during a press conference in Mumbai. Apart from export performance of the industry, the GJEPC also discussed challenges faced during the year and actions taken for the same.

Pandya spoke about growing strength of Dubai as a jewellery manufacturer and expressed his disappointment with the existing tax laws in the country that are deterring the growth of the domestic jewellery manufacturers. Provisional gross export of gold jewellery for the period April 15-February 16 at US$ 7752.06 million (Rs. 50733.88 crores) showed a decline of 15.54 per cent (-9.38 per cent Rs. term) over the comparative figure of US$ 9178.69 million (Rs. 55985.02 crore) for April 14-February 15.

The overall gross export of Cut and Polished diamonds at US$ 18172.43 million (Rs. 118715.91 crore) showed a decline of 15.12 per cent while imports too witnessed drop of 58.33 per cent during FY 15-16.

During the same period of previous year, in volume terms gross import of rough diamonds at 1233.94 lakh carats has shown a decline of 7.17 per cent.

Meanwhile, Pandya also talked about the formation of 20-member national committee to talk to the central government on behalf of the jewellery trade on the crucial issue of one per cent levy of excise duty. The committee includes representatives from GJEPC, All India Gems and Jewellery Trade Federation (GJF), All India Jewellers Action Committee, Indian Bullion and Jewellers Association (IBJA) and others.