Gems & jewellery sector jubilant

Updated: Mar 1 2006, 05:30am hrs
Gem and jewellery sector has whole-heartedly welcomed the moves announced by the finance minister P Chidambaram in his budget proposals for 2006-07 on Tuesday. The Indian gem and jewellery industry is now set to make a quantum leap forward. The annoucement to set up an expert committee to consider the recommendations by the gem & jewellery sector will help India transform into international gems and jewellery trading hub, Bakul R Mehta, Chairman, Gem & Jewellery Export Promotion Council (GJEPC) stated.

This committee is expected to work out details, rationalise taxes and streamline rules within the next month or so. The FMs in-principle agreement to replace income-tax for the gem and jewellery industry with a presumptive tax will boost exports, increase foreign direct investment in this sector and let India move to the forefront of the global gem and jewellery industry. This will enable the domestic industry to take on the challenges posed by centres such as Antwerp, Ramat Gan in Israel, Bangkok and Dubai. Presumptive tax is already the norm in these international centres.

The announcement of EOU to be made at par with DTA units is also a welcome move as it would provide the level playing field and help industry boost its exports in future. Tehmasp Printer, MD, International Gemological Institute stated that, "We are happy with the impetus and support the Government has shown.