For the gems and jewllery sector:
1. Economic Stimulus Package for Exporters to be extended
The economic stimulus package including 2 per cent interest subvention may be extended for a further period as the economic slowdown in global markets continues to impact the export industry
2. Liberalisation of Gold imports to make it easier for all players to have access to necessary supplies at competitive prices
Complete liberalization of gold imports so that all leading players can import gold without any restrictions. This will aid supply to the industry throughout the country at competitive prices
3. Search & Seizure provisions of proposed Direct Tax Code should be withdrawn
The powers to Seize stock in trade during Search operations by authorized officer should be withdrawn as seizure of raw materials will hamper continuation of business.
4. Supply of goods from SEZs to domestic markets should be permitted - appropriate duty on raw materials may be charged
Exporters in SEZs may be permitted to send some part of the product to the domestic market on payment of appropriate duties on raw materials without tax on labour costs.
Also definition of jewellery SEZ should be broadened to include all accessories that are manufactured with precious metals or studded with diamonds and precious stones.
5. Machinery imports for jewellery units should be allowed duty free
The jewellery industry provides massive employment across India and has potential to grow further. Modernization of the sector will also be encouraged by this step.
6. Easy availability of dollar finance at internationally competitive rates
Government should ensure easy availability of dollar finance available at LIBOR + 1% to be on par with other international centres of gem and jewellery industry. Current rates of 3-4% above LIBOR make Indian industry non-competitive.
7. Extension of IT Exemption U/s 10A / 10B / 10AA of Income tax Act
In view of the global economic slowdown and the hardships faced by exporters, IT Exemption to EOUs and units in SEZs may be further extended beyond March 2010.
For the retail sector
1. Grant 'Industry' Status to retail sector
This would help the rapid development of the modern retail segment by providing easier access to organized financing and garnering of fiscal incentives. In turn this would greatly boost the employment potential of the sector.
2. Permit FDI in Multi-Brand Retail
This will help rapid modernization and strengthening of the distribution system, and speedy growth in the infrastructure, and bring in much needed professionalism into the sector.
3. Incentives to Encourage Consumption
Tax and other incentives to boost consumption and consumer demand are an important requirement especially in the context of the global economic slowdown.
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