India looks to cut taxes for overseas diamond miners to boost trade
New Delhi/Mumbai — India’s trade ministry is seeking a cut in taxes for overseas diamond miners to boost trading in the world’s largest hub for polishing the gems, people with knowledge of the matter have said. The country’s commerce department, in a letter to the finance ministry, has sought to scrap levies and, instead, introduce a presumptive tax of 0.25% on diamond mining companies to lure such firms to sell the stones in special notified zones, the people said, asking not to be identified as the plan isn’t public. Currently, miners refrain from selling diamonds in India as it attracts as much as 33% tax, at par with those paid by local companies on their income, according to the Gem and Jewellery Export Promotion Council. Slashing taxes will bring India in line with international centres such as Antwerp and Israel, cut out middlemen, and boost supply of rough diamonds in the nation where 14 out of every 15 of the gems are polished. It will reduce costs for small merchants who h...
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