Pakistan’s Gems and Jewelry Sector: 16% General Sales Tax Waived to Reduce Cost of Production

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) August 23, 2009 -- Pakistan’s Federal Board of Revenue (FBR) has exempted the import and local supply of platinum, palladium, diamonds and precious stones from 16% general sales tax with the aim of reducing production costs related to exports in the gems and jewelry sector.

In 2008, the Pakistani cabinet approved waiver of customs duties and sales tax on the import of gold, diamonds, silver, platinum, palladium and precious stones. The waiver was not extended to pearls or reconstructed precious or semi-precious stones. Despite the cabinet’s decision, FBR failed to implement the resolution comprehensively.

In the Pakistani Trade Policy 2009-10, a decision was made to exempt natural pearls and other synthetic or reconstructed precious or semi-precious stones from customs duty and sales tax. According to the federal cabinet’s instructions, FBR reportedly allowed the exemption from GST on the import and local supply of platinum, palladium, diamonds and precious stones. The exemption of customs duties on the import of platinum, palladium, diamonds and precious stones is still pending.
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