GJEPC To Make Policy Proposal To Increase Diamond Jobs in India

Economy
03/05/2016 17:05

With a view to attracting diamantaires from other centres across the world to process their diamonds in India, the Gems and Jewellery Export Promotion Council (GJEPC) wants the central government to implement a 'job work' policy like that which is implemented in China, providing tax exemptions for importers and exporters of diamonds, and is preparing a draft policy to this end. The claim is that China's policy is the reason why despite labour being 20% cheaper in India, diamantaires from different parts of the world prefer sending their goods to China for processing. The job work policy in China allows them to send their goods there without having to pay any duty or tax.  "The job work policy draft is being prepared and will be submitted to the government soon. It is proposed to allow goods on consignment basis for manufacturing purpose to help create more jobs for artisans and labourers in the country," GJEPC vice-chairman Russell Mehta said.

India does not produce rough diamonds and almost 90% of the end product of cut and polished diamonds manufactured in India are exported. Due to non-existence of consignment import of diamonds, diamantaires in the UAE, Antwerp, Russia and Hong Kong send their diamonds to China for processing. Experts have argued that the industry should be declared a zero-rated indirect tax regime and all duties collected as Service Tax, VAT or GST should be refunded by drawback at the rates computed by way of survey of actual exports.