Some of the Concessions won by the S.L.G.J.A. in 2009

1.  $1000 grant for SLGJA members to participate at Tucson Show, USA
2.  Negotiated the removal of 12% VAT for jewellery sales
3.  Negotiated the removal of ESC for the Industry.

The gem jewellery industry enjoys highest number of concessions compared to any other industry in Sri Lanka. This did not just happen by luck or by chance, but is the result of perseverance and sheer hard work, coupled with good planning, timely, skillful and proactive interventions by the Sri Lanka Gem Jewellery Association. Items passed in the 2008 Budget

 

1.   Income Tax Exemption for Service Cutting with effect from 01.04.2008
2.  Special foreign currency account for gem & jewellery exporters permitting them to use    50% percent of their foreign exchange earnings to import raw material.
3.  Income Tax Exemption for Dividends received from outside Sri Lanka with effect from 01.04.2008
4.  Central Bank to introduce a credit guarantee scheme for borrowings by gem jewellery industrialists.
5.  Containers for the packing of Gems Jewellery exempted from customs duty

2007 Successfully lobbied and achieved the following six tax incentives for the Gem & Jewellery Industry:-

1. Export income arising from gems imported and thereafter cut and polished, will be exempted from income tax.
   
2. Exporters will be permitted to use 50 percent of their foreign exchange earnings maintained in bank accounts in Sri Lanka, to import required raw material.
   
3. Central Bank of Sri Lanka will introduce a credit guarantee scheme to encourage Banking Institutions to extend credit to industrialists engaged in the Gem & Jewellery industry.
   
4. In lieu of the prevailing income tax, 2.5% income tax will be charged on the value realized from gem auctions conducted under the supervision of the National Gem & Jewellery Authority.
   
5. In April 2007 we negotiate with the postal authorities to accept gem & jewelry parcels under EMS.
6.  Raw materials, parts and accessories to be used for fashion jewellery industry will be exempt from customs duty.
7. Reduction of VAT on sale of jewellery from 20% to 5% with effect from 1.1.2007
   
8.  Removal of VAT on import of Gems, Diamond Gold, with effect from 1.1.2007
   
9. 100% input credit on VAT on imports with effect from 1.1.2007.
10.  Removal of PAL on import of Gems, Diamonds Gold with effect from 1.1.2007
    
11. Revision of ESC on diamond cutting to 1% of value addition with effect from 01.04.2007

1. 2006 Successfully lobbied the re-instatement of tax incentives on income from the sale of gems and jewellery for foreign currency
2. Negotiated a 30% reduction to the revised export service charge imposed by NGJA 
3. Construction of 20 houses for those affected by the Tsunami

1. Reviving livelihoods of 145 Tsunami affected persons in the gem and jewellery industry
2.  Successfully lobbied the removal the VAT on raw material imports imposed in the 2005 budget.
3. Concessionary finance scheme for lapidaries and jewellery manufacturers

2004 Negotiated with Department of Exchange Control for a $15,000 allowance to dealers to purchase gems
overseas.

2004 Formulated a Code of Ethics for the industry and adopted it as the code of ethics for our members.

2003 Averted an international scandal on unethical geuda treatment and disclosure, by convincing the trade to cooperate with international researchers, liaising with trade organizations in consuming countries and by guiding and supporting the NGJA in damage control measures.

2003 Formulated a concessionary finance scheme for lapidaries and jewellery manufacturers

2003 Formulated Ceylon Sapphire Branding Campaign