Diamond traders seek tax turnoverFebruary 19th, 2008 - 2:54 pm ICT by admin
Surat, Feb 19 (ANI): Diamond traders are demanding a higher turnover tax and a special package in the upcoming budget.
India’s overseas sales of gems and jewellery represent the country’s second-largest export industry, after computer software.
“We have a few expectations from Finance Minister P. Chidambaram in the forthcoming budget this time. We had made a representation-seeking introduction of a turnover tax. If the government fixes the turnover tax at three percent, then it will benefit the industry enormously,” said Rohit Mehta, Joint Secretary, Surat Diamond Association.
Surat alone contributes a major chunk of the 60 per cent of the world’s polished diamond market.
The Indian diamond industry employs about 700,000 people in 150,000 outlets in the diamond processing industry.
The industry, mostly made up of small and mid-sized firms has been badly hit by the rupee appreciating against the dollar.
“The appreciation of rupee against the dollar, affected the industry badly. We want a special package for the industry in this time’s budget for the scores of affected traders and manufacturers,” Mehta added.
India’s diamond industry has been reeling under a spate of problems.
Shortage of raw material is a major issue. The traders want the government to expedite mining to help them cope with the raw material shortage.
India, which processed 95 per cent of the world production in 2004, has seen its share drop to 75 per cent to 132.17 million carats in 2006. (ANI)
Tags: carats, chunk, computer software, diamond industry, diamond market, diamond traders, export industry, finance minister, forthcoming budget, gems, India, jewellery, p chidambaram, raw material, rohit mehta, rupee, spate, turnover tax