The government decided to constitute an expert body to study the potential of the gems and jewellery industry on February 28, 2006. “The body will study the prevalent taxation practices in India and abroad and make its recommendations,” said Chidambaram. This announcement will be welcomed by non-resident Indians who are looking to India as a place for future expansion and growth, an official said. %%The Indian gem and jewellery industry is now set to make a quantum leap forward. The recommendations of the expert committee will help India transform into an international gems and jewellery trading hub. This committee is expected to work out details, rationalize taxes and streamline rules within the next month or so. This, together with the Finance Minister’s in-principle agreement to replace income-tax for the gem and jewellery industry with a presumptive tax – as is already the norm in international centres – will boost exports, increase foreign direct investment in this sector and let India move to the forefront of the global gem and jewellery industry, taking on the challenges posed by such centres as Antwerp, Ramat Gan in Israel, Bangkok and Dubai.%%The Gem & Jewellery Export Promotion Council also welcome the finance ministers announcement that with declining import duties, export oriented units (EOU) should be on a par with domestic tariff area (DTA) units. "The announcement of EOU to be made at par with DTA units is also a welcome move as it would provide the same level playing field and help industry boost its exports in future," says Bakul Mehta, Chairman of GJEPC.%%The budget also touched points like Diamond & Jewellery Dollar Account for exporters dealing in purchase/sale of diamonds and diamond studded jewellery, Nominated agencies to accept payment in dollars for cost of import of precious metals from EEFC account of exporter and Gem & Jewellery units in SEZ and EOUs can receive precious metal i.e Gold/silver/platinum prior to exports or post exports equivalent to value of jewellery exported. This means that they can bring export proceeds in kind against the present provision of bringing in cash only.