India’s Finance Ministry is mulling a change in tax structure in order to encourage diamond mining companies to sell their rough directly in India, according to Gem Konnect.
Under the current tax system, diamond mining companies have to pay as much as 33% tax, which has led to a restriction of rough supply to tenders displaying the goods – while the sale itself is conducted through Dubai or Antwerp. The Commerce Ministry, which has urged the Finance Ministry to change the tax, “wants the current levies replaced by a 0.25% presumptive tax on mining companies”, according to the same source.
Earlier this month, it was reported that India is also working on a National Gold Policy with the aim of increasing the country’s jewelry exports. According to the piece, exporters of diamonds and jewelry “fear that the country’s exports may stagnate at $43 billion if the government doesn’t intervene”. A think tank has already been formed, according to the report, and the new policy “is expected to address issues including standardisation, imports, exchange mechanism for gold and refineries, etc”.
