Removal of VAT will increase export income
Gem and Jewelry Authority says that the removal of the Value Added Tax (VAT) on the imports of Gems and unpolished gems could expect an increase in the export income.
Chairman of the Authority Asoka Jayawardene pointed out that number of years ago in the past before the VAT was introduced, exporting of gems and jewelry had shown gradual increase in the income. But last budget’s imposition of the VAT on the import and sales of gems has caused a considerable impact in the export income.
In 2003 the export income of gems and jewelry was Rs.26 billion and it went up to Rs.30 billion in 2004. The Authority pointed out that with the imposition of VAT, there was a decrease in export income. Importing rough gemstones from countries like Madagascar and export them after cutting and polishing them was one system of earning good income.
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