India's Diamond Traders: Scrap the Rough Tax
November 10, 20
(IDEX Online) - India's diamond traders are calling on the government to make good on its promise to scrap the new two per cent e-commerce tax on rough imports.
The finance ministry gave industry leaders an undertaking in August that diamonds would be exempt from the equalization levy introduced in April.
But after three months it has yet to formally amend the law, prompting concerns among diamantaires.
Colin Shah, (pictured) chairman of GJEPC (Gems and Jewellery Export Promotion Council) told the Times of India newspaper: "The industry is facing a heavy loss in exports already and now this two per cent EL is unfair tax is unfair to the industry.
"In our last meeting with union finance minister, we had urged government to remove the EL clause. We are hopeful that we will see the amendment soon."
In August the GJEPC said: "The finance minister clarified that the e-trade of rough diamonds does not attract 2% Equalisation Levy and assured the representation that a clarification will be done on this soon."