The Federal Board of Revenue (FBR) instructed the customs authorities to simplify the procedure for issuing exported lots of precious stones and jewelry to stimulate the development of the country's emerging jewelry industry, Rapaport reports citing the local Business Recorder.
According to some sources, this decision was made at a meeting of the commission of the Ministry of Industry, within which a new strategy was developed to promote the export of precious stones and jewelry.
The Director General of the Pakistan Gems and Jewelery Development Company (PGJDC) briefed the participants on the proposed strategy, and his team highlighted the main aspects of the PGJDC action plan, which provides rationalization of tax policy, promotion of marketing, creation of financial and renewable funds, strengthening of production clusters and establishment of special industrial parks.
PGJDC stated that to achieve its objectives, it needs the assistance of the FBR, as well as the ministries of trade, finance, and industry. Among other things, it is necessary to revise the provisions of SRO 575 (1) / 2006 on the import of equipment for jewelry production, as well as the condition for notarization of the contract between the exporter and importer under the scheme specified in SRO 760 (1) / 2013. To stimulate the growth of exports, it is necessary to develop schemes of benefits, as it is implemented in other sectors. Insurance and reinsurance corporation of Pakistan should carry out insurance of precious stones and jewelry.
Among the proposals received - cancellation or reduction of up to 1% of the tax on gold, reduction of the pre-term income tax on pearls, synthetic stones, precious and semiprecious stones and diamonds from 5% to 1%.
At the meeting, it was agreed to consider the issue of lifting the duty on the import of equipment for the jewelry industry.