Nov 16, 2006 (LBO) â€“ Local jewellers have got a host of tax reductions in the country’s budget proposals for next year, as well as restrictions on jewellery imports. The Port and Airport Development levy on gems, jewellery and gold is to be removed and the Value Added Tax on jewellery reduced from 20 percent to five percent.
A 15 percent cess is to also be imposed on imports of jewellery, Mahinda Rajapakse, Sri Lanka’s President and finance minister said Thursday, presenting the country’s budget plans for 2007.
Local manufacturers will have to pay an annual registration fee of 5000 rupees however, to support technology development of high value products. A one percent economic service charge will apply on the local jewellery manufacture however and in the case of jewellery exporters, on value added exports.