The Indian government is likely to come up with a benign tax regime for the country’s diamond sector in special notified zone (SNZ), to help India become a hub of international trading of rough diamonds.
The gems and jewellery industry has suggested that the turnover tax on diamond trade in the special notified zone should not be more than 0.25 per cent and must be internationally competitive.
The proposal was submitted to the Finance Ministry for its consideration in the Budget for 2016-17. To enable trading from the SNZ and attract foreign companies, taxation regime should be simplified and competitive.
The SNZ, which was set up with a view to facilitating imports and trading of rough diamonds, would also give the diamond industry a strong competitive advantage against other trading centres like Antwerp, Dubai, by saving time and foreign exchange spent on travel to these trading centres or establish offices there. It will also ensure steady supply of rough diamonds in the country.