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Thursday, 14th April 2005 (5643 views)

The jewellery and gem industry in India could yet be exempted from a new service tax being proposed by the government in its latest budget.<br/> <br/>According to Rapaport News, sources in the Gem & Jewellery Export Promotion Council (GJEPC) say they have been "assured" that an exemption will be forthcoming after months of lobbying.<br/> <br/>The tax proposals would see 10.2 per cent added to the cost of processing stages in the jewellery trade, such as polishing and cutting - resulting in a marked increase in price for the final product.<br/> <br/>However, meetings with the GJEPC and the government now appear to have borne fruit, although there could yet be further difficulties with the planned imposition of a two per cent tax on branded jewellery.<br/> <br/>Jewellers in India recently staged a three-day strike against the excise duty on branded jewellery proposed in the budget, with GJEPC and the Karol Bagh Jewellers Association among those organisations taking part.<br/><br/>During the last calendar year, total exports of the Indian gems and jewellery sector were $14.33 billion, up around 38 per cent from the previous year.<img alt="track" src="http://directnews.dehavilland.co.uk/dn.gif?feedid=196&itemid=8270747"/>

 

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