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Local gem, jewellery trade get tax friendly budget

Nov 16, 2006 (LBO) – 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.
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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.

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Local manufacturers will have to pay an annual registration fee of 5000 rupees however, to support technology development of high value products.

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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.
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Please click to read the Budget 2007 speech:

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