Proactive Polices For Gems & Jewellery Sector Sought.

SURAT: The Gems and Jewellery Export Promotion Council (GJEPC) has urged the Central government to come up with proactive policies in its forthcoming budget for 2011-12 to provide a competitive edge to India's gems and jewellery sector in the global export market for cut and polished diamonds and jewellery products.

In its budget proposals submitted to the ministry of commerce and the ministry of finance, the GJEPC has urged the government to introduce presumptive taxation in Indian gems and jewellery sector instead of benign assessment procedure. The non-introduction of presumptive tax system would further result in migration of business and capital to the low-cost labour intensive countries like China and Thailand.

For the first time, the GJEPC has urged the Central government to launch Technology Upgradation Fund Scheme (TUFS) for the gems and jewllery sector to boost technology upgradation in the diamond and jewellery manufacturing. A separate fund has been demanded for the development of the skills of workers in the diamond sector. The TUFS scheme is already there for the textile industry.

Other demands include exemption of 10.2 per cent service tax on the procurement of rough diamonds, import of rough diamonds and colour gem stones on consignment basis, income tax holiday for a period of 15 years for Bharat Diamond Bourse (BDB) and income tax exemption for the Export Promotion Council, exemption from import duty on rhodium and diamond and jewellery manufacturing machineries etc.

Sanjay Kothari, vice-chairman of GJEPC, said, "The gems and jewellery sector in the country has bounced back in record one year's time after the worst ever global economic downturn. Now, the sector is looking up to the pragmatic policies of the Central Government in order to sustain the global competition."

Source : timesofindia.indiatimes.com