GJF hopes budget would bring back sparkle to the industry
India Gems and Jewellery Trade Federation today said the coming union budget had the potential of restoring the sparkle to the industry if the government sought to grant its various demands, including introducing presumptive tax on total turnover for small jewellers of 2.5 per cent or 3 per cent.
February 22, 2011 / 15:11 IST
India Gems and Jewellery Trade Federation today said the coming union budget had the potential of restoring the sparkle to the industry if the government sought to grant its various demands, including introducing presumptive tax on total turnover for small jewellers of 2.5-3%.
GJF, the national body that represents more than 3,00,000 jewellers, manufacturers, wholesalers, retailers, distributors and allied services to the industry, also called for abolishing wealth tax on gems and jewellery.The Federation also called for instructing banks to provide gold and raw material on low cost loan basis to gems and jewellery trade at an interest rate of 2.5-3.5% per annum to generate further employment.The budget wish list also included reducing pure investor investment interest thereby reducing volatility in gold rates by increasing cost of trading in electronic medium or bringing in restrictions on gold trading on bourses.Allocating funds through the National Skill development Council for GJF to enhance skills in this sector was also one of the demands of the Federation.The other demands include conferring council status to the National Gems and jewellery body so that the body can be a part of government discussions and make more proactive contribution to legal mandates.C Vinod Hayagriv, Chairman, All India Gems and Jewellery Trade Federation, said "India being the second highest consumer of gold, it is very important we look at minimising irregularities in this sector in order to maximize profit and stabilize this industry.""This sector has also been under the scanner recently as High Risk Sector but the fact remains that money laundering and funding of terrorists has not happened in the normal course of business in the gem and jewellery sector," he said."This sector is highly consumer centric catering to the interests of a large, growing and the central market place of gems and jewellery in India. Hence the decision that the ministry takes in the course of the next few days is very crucial and will help us chalk a way forward for the gems and jewellery industry," he said. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
