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Gems and jewellery sector urges Pranab to simplify tax regime in Budget
The apex body of the gems and jewellery industry Gems and Jewellery Export Promotion Council( GJEPC) on Thursday has demanded for simplification of tax regime in the forthcoming Union Budget 2012-2013.
The diamond industry appealed to Finance Minister Pranab Mukerjee to introduce presumptive tax regime under which the industry is charged on an average rate of 1-3 per cent of their profit margins.
GJEPC Chairman, Rajiv Jain said that “he appealed to the Government to remove tax related strangeholds that are preventing the industry from growing at a healthy and desired pace”.
He said in our latest appeal, we are seeking for the withdrawl of the Benign Assessment Procedure and the acceptance of the Presumptive Tax system which encourage more investment in the sector, retain trade, skilled labour and capital, enhance global competitiveness and increased employment opportunities in the country.
Jain said that “The uncompetitive tax environment is driving direct investments away from India and mainly to China and Thailand which have cheap labour and lesser jurisdictions”.
GJEPC is of the view that 80 per cent of the diamond industry is earning an average profit of 3 per cent due to tough competition from countries like Dubai which has a tax free regime.
The apex body of the gems and jewellery industry Gems and Jewellery Export Promotion Council( GJEPC) on Thursday has demanded for simplification of tax regime in the forthcoming Union Budget 2012-2013.
The diamond industry appealed to Finance Minister Pranab Mukerjee to introduce presumptive tax regime under which the industry is charged on an average rate of 1-3 per cent of their profit margins.
GJEPC Chairman, Rajiv Jain said that “he appealed to the Government to remove tax related strangeholds that are preventing the industry from growing at a healthy and desired pace”.
He said in our latest appeal, we are seeking for the withdrawl of the Benign Assessment Procedure and the acceptance of the Presumptive Tax system which encourage more investment in the sector, retain trade, skilled labour and capital, enhance global competitiveness and increased employment opportunities in the country.
Jain said that “The uncompetitive tax environment is driving direct investments away from India and mainly to China and Thailand which have cheap labour and lesser jurisdictions”.
GJEPC is of the view that 80 per cent of the diamond industry is earning an average profit of 3 per cent due to tough competition from countries like Dubai which has a tax free regime.
