ANNOUNCNG his budget proposals for 2007, Sri Lanka’s president and finance minister Mahinda Rajapakse lowered certain taxes on the jewellery industry, while imposing restrictions on jewellery imports in a bid to increase the country’s earnings and add value to the local jewellery industry.

The Port and Airport Development Levy on semi-precious stones, diamonds and gold was scrapped, while value-added tax was reduced from 20 per cent to 5 per cent. A 15 per cent cess was imposed on jewellery imports

Jewellery manufacturers will have to pay an annual registration fee of Rs.5,000 ($45) to support the development of technology for high value products. An economic service charge of 1 per cent will apply on local jewellery manufacturers, while in the case of exporters, the 1 per cent charge will apply on value addition.