Gota gives glitter to gold and gem industry

Tuesday, 8 September 2020 00:49 - - {{hitsCtrl.values.hits}}

Govt. introduces new measures, including removing 14% income tax on jewellery sales, 15% tax on gold imports
Rs. 1 m loan scheme with 4% interest for manufacturers
Gem mining licensing to be established at one location
Uncultivated plantation land with possible gem deposits to be given for mining
Training centre to be fast-tracked

A slew of measures were introduced yesterday to boost the country’s gem industry, including removing the 14% income tax on sales and 15% tax imposed on gold imports by the Government, in an effort to promote it globally.

As such, a decision has been made by President Gotabaya Rajapaksa to remove the 14% income tax on gem and jewellery sales and the 15% tax imposed on gold imports, and also introduce a Rs. 1,000,000 loan scheme with a 4% interest rate for jewellery manufacturers and traditional goldsmiths.

President Gotabaya Rajapaksa

The decisions were made yesterday afternoon, during a discussion at the President’s Office, which focused on the barriers faced by the country in playing a central role in the global gem industry.

Fourteen recommendations compiled by Gem and Jewellery Related Industries State Minister

Lohan Ratwatte were discussed at length.

Minister Ratwatte highlighted the importance of facilitating the importation of high-priced gems unique to other countries and which are not found in Sri Lanka, and maintaining a gem reserve.

President Rajapaksa said that all relevant institutions should be brought into one place to avoid delays in the issuance of gem mining licenses.

It was also decided to remove the barriers that had obstructed the release of uncultivated lands with gem deposits belonging to plantation companies, and to take over control of these lands for the benefit of the mining industry. President Rajapaksa instructed the officials to expedite the construction works of the proposed Gem Trading Complex and Training Centre at Demuwawatha, Ratnapura.

Unregulated and illicit gem mining is taking place in areas containing rich gem deposits of the Ratnapura District on a large scale.

President Rajapaksa urged officials to immediately halt the gem mining activities that are carried out in a manner harmful to the environment, as well as to remove barriers to the traditional gem mining industry. A number of views presented for the advancement of the industry were discussed in detail at this meeting, including the development of the Gem Laboratory of the National Gem and Jewellery Authority on par with international standards.

Industries Minister Wimal Weerawansa, State Minister Lohan Ratwatte, Head of the Presidential Task Force on Economic Revival Basil Rajapaksa, Secretary to the President P.B. Jayasundera, Officers of the Line Ministries, and gem and jewellery industrialists participated in this meeting.