Economy & Growth

Rough gem imports: SL revises tax method

Sri Lanka has revised the taxation methodology applied to imported rough gemstones, a move aimed at easing costs for industry stakeholders and supporting the country’s target of reaching $ 1 billion in annual gem export earnings.

The National Gem and Jewellery Authority (NGJA) announced the changes at a press briefing held at the Department of Government Information.

NGJA Chairperson S.P. Chaminda said the revised system would provide significant relief to gem importers by changing the method used to calculate Value Added Tax (VAT) on rough gemstone imports.

“We have taken steps to provide greater relief to importers by changing the method used to calculate Value Added Tax (VAT) on gem imports. Under our new proposal, a fixed value will be assigned to each imported parcel,” he said.

Under the revised framework, precious stones such as rubies, sapphires, and emeralds will be assigned an estimated value of about $ 900 per kilogram, with VAT calculated based on that amount. The earlier customs charge of $ 200 has also been removed, according to the NGJA.

Source - The Morning