Tanishq to deepen its presence in luxury segment

To set up high-end stores across specialty malls in India

Post By : Diamond World News Service On 24 November 2007 12:00 AM
Indian budget 2007 may have got some positive news for the gem & jewellery sector, still there are certain requirements that the trade thinks are important but haven’t been fulfilled. %% Introduction of Turn over tax regime is a sure developmental step but the picture is still not very clear on the introduced reform, “Currently, there is no clarity about the tax policy to be introduced. We look forward to the instructions on the same from the Finance Ministry. As per the Finance Minister, we hope that it will help simplify the taxation process” says Ashish Goenka, Managing Director (Suashish Diamonds Ltd.) %% Most importantly, the reduction in import duty on cut and polished diamonds from 5% to 3%, Rough Synthetics from 12.5 % to 5% and unworked Coral from 30% to 10% is being seen as a very encouraging support step from the Indian government. %% The above stated reduction of taxes was much awaited by the precious sector, though the industry anticipated complete abolishment of import duty on CPD, “Reduction in the import duty from existing 5% to 3% is welcomed by the industry, but we were expecting the import duty on diamonds to be completely removed. Apart from being a very strong manufacturing base for diamonds, reduction in the import duty will help the country to become an important trading centre in the world. With a larger variety of products freely available in the market, more international customers will be attracted to India. The booming Indian Consumer market will gain, as they will get more variety,” details Goenka. %% However, the reduction in duty is sure to have a positive impact on the industry, “The reduction in the import duty on cut and polished diamonds from 5% to 3% announced by the Finance Minister will provide an impetus for growth of the gem and jewellery industry, which is a large contributor to the economy as well as a large employment provider,” feels Tehmasp Printer, Managing Director, IGI – India (International Gemological Institute). %% Sanjay.A.Kothari, the esteemed Chairman of GJEPC looks forward to more support from the Indian Government. “The announcement still restricts the industry to go global with full vigor. Industry feels much more can be done to develop and encourage Foreign Direct Investment in the sector and make India the preferred destination for Global Gems & Jewellery”, he said .

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