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President calls to scrap taxes on gem & jewelry industry

President Gotabaya Rajapaksa has directed relevant officials to remove the 14% income tax levied on profits earned by gem and jewelry manufacturers and the 15% import tax on gold.

The income tax concession given to the gem and jewelry industry from 1971 was removed from the income tax policy introduced in 2017. This created a situation where the actual income earned from the export of gems and jewelry was not disclosed, states President’s Media Division.

“In 2018, a 15% tax was imposed on gold imports. These taxes have led to a rise in jewelry prices. Relevant taxes should be removed immediately and steps should be taken for the betterment of the gem and jewelry industry,” the President said.

The President made this observation at a discussion held at the Presidential Secretariat this afternoon (07) on the upcoming plans of the State Ministry of Gems and Jewelry Related Industries.

At the meeting, 14 proposals put forward by State Minister Lohan Ratwatte to address the issues related to Sri Lanka’s difficulty in becoming the center of the world market for gems were discussed at length.