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.
More: colombopage.com
Sri Lanka : Gem sector to shine a VAT goes
With immediate effect, 15 percent Value Added Tax (VAT) on the imports and trading of rough, cut and polished gemstones , diamonds and precious metals, has been abolished, as per the decision taken by the Sri Lankan Cabinet.
The move is seen to transform Sri Lanka in to a gem industry hub, what with gem and jewellery exports for 2004 earning US $101.23 million for the country in 2004.
During the first half of 2005, gem and jewelry exports were recorded at US$44.80 million.
The sector is expected to cross tea and apparel sectors in export performance in the future with more value addition and creativity.
More: fibre2fashion.com
VAT out but no reduction of diesel price
Despite the decision of the government to take off the Value Added Tax (VAT) from diesel, the current price of a litre of diesel will remain the same, Chairman of Sri Lanka Petroleum Corporation Jaliya Medagama said.
According to him the government decided to remove the VAT from diesel although the price of diesel has gone up in the world market. “We sell a litre of diesel at Rs.50 inclusive of VAT. But if we go by the world price we should sell a litre of diesel at Rs.65. The government has decided not to collect VAT from the consumers and to bear the burden by the government itself. Hence there is no change in the present price of diesel in the local market. So there is no price reduction for diesel although the government removed VAT from diesel,” he said.
More: colombopage.com
Sri Lanka abolishes 15 percent VAT on gem industry
The Sri Lankan Cabinet has decided to abolished the 15 percent Value Added Tax (VAT) on the imports and trading of rough, cut and polished gemstones, diamonds and precious metals with immediate effect, the official Daily News reported Saturday.
“We have taken a bold step forward in the right direction to make Sri Lanka the hub in the gem Industry,” Advanced Technology and National Enterprise Development Minister Rohitha Bogollagama was quoted by the paper as saying.
He said that the gem and jewelry industry is now an open, progressive and value added sector, which is expected to surpass tea and apparel sector exports in the future with more value addition and creativity.
More: english.people.com.cn
Sri Lanka Ends Diamond VAT, Adopts Cert Program
Sri Lanka’s cabinet ended its 15 percent Value Added Tax (VAT) on imports and trading of rough, cut and polished gemstones, diamonds and precious metals, reported the official Daily News on July 24.
“We have taken a bold step forward in the right direction to make Sri Lanka the hub in the gem industry,” said Rohitha Bogollogama, minister of advanced technology and national enterprise development. Additional incentives encouraging Sri Lanka’s mining sector will be added to the 2006 budget, she added.
Sri Lanka’s gem and jewelry industry is expected to surpass tea and apparel sector exports in the future.
The Sri Lanka Gem and Jewellery Association (SLGJA) said its in the process of introducing an internationally recognized quality certificate certifying the quality of gems purchased in Sri Lanka. Currently, certificates that are issued are not recognized internationally, reported the Daily News.
More: diamonds.net
Sri Lanka Cancels VAT on Diamonds, Gems
Sri Lanka canceled the 15 percent VAT imposed on rough and polished diamonds, gemstones, and precious metals. Industry incentives are planned for next year.
“We have taken a bold step forward in the right direction to make Sri Lanka the hub in the Gem Industry,” said Advanced Technology and National Enterprise Development Minister Rohitha Bogollagama.
Next year’s budget will include incentives to the industry, he said at a press conference in Colombo, adding that it will boost the local gem trade.
More: idexonline.com
7/25/2005
Sri Lanka govt removes VAT on imports
The decision by the Sri Lanka Cabinet to remove the 15 percent Valued Added Tax (VAT) on imports will help bring down the rising cost of living, Finance and Planning Minister Dr. Sarath Amunugama has said with confidence.
The government yesterday announced that as a part of its strategy, it has decided to remove the 15% VAT on diesel.
Minister Amunugama said the cost of a barrel of diesel in the world market has risen to US$ 50. This is much higher than what it was at the time the Freedom Alliance government presented its maiden budget last year. He said he believed the removal of the VAT would contribute to maintaining the current price of diesel and in turn help bring down the cost of goods.
“After this decision, there would be no need for price hike,” the Finance Minister said at a Cabinet briefing. He added that the removal of the VAT on diesel would cost the government some Rs. 7 billion annually.
More: colombopage.com
5/2/2005
VAT hits the gem industry
Sri Lanka’s exports of jewellery for the first quarter of this year dropped by 29 percent to Rs 243.3 million from Rs 358.5 million during the corresponding quarter of 2004. The Sri Lanka Gem and Jewellery Association (SLGJA) which makes up the industry, attributes this drop to the 15 percent VAT imposed on imports of gems into the island, effective from January 1.
Year 2004 was the best year for exports of gems and jewellery, netting in $129.9 million, 39 percent over that of the previous year. The number of lapidaries increased by 200 during 2004 and continued a 39 percent growth during the first quarter of this year. But, Sri Lanka’s expanding gem and jewellery industry has during the past decade run out of raw materials, being gemstones.
Only one percent of gemstones mined in Sri Lanka go into making the finished product.
In 2004, 500 gem dealers travelled to Madagascar to purchase gemstones and banks readily gave $15,000 in foreign exchange to a gem dealer per trip.
More: sundayobserver.lk