ISLAMABAD: An inter-ministerial panel of the SIFC (Special Investment Facilitation Council) has asked the Federal Board of Revenue (FBR) to share a detailed report on prevailing taxation procedures (imposition of regulatory duty) on the export of precious and semi-precious stones.
Theses directions were issued by the panel in its recent meeting presided over by Additional Secretary, Ministry of Industries and Production (MoI&P) after detailed discussion on its decisions of December 4, 2023 and January 4, 2024.
According to sources, representative of Commerce Ministry proposed that instead of having an outright ban on exports of gems, two of the following options may be explored: amendments be made in the Export Policy Order 2022 regarding provisions related to Temporary Exports or Impose a minimum export price on the export of gems. It was decided that in the next Working Group meeting members from Gems and Jewelry Association will be invited to discuss the proposals of Commerce Division.
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Secretary Industries, Punjab, KPK, AJ&K, Gilgit & Baltistan, Sindh and Punjab emphasized that due to lack of proper regulatory regime and noncompliance of legal framework, reservoirs of mineral resources (gemstones) are being depleted. It was accordingly decided that provincial legal frameworks regarding ban on blasting and illegal extraction shall be enforced in letter and spirit.
It was also decided that provincial authorities shall share information on the number of FIRs registered in the past one year on the illegal extraction of gems, along with estimated reserves of types of gems and exact location of mines on the map with the Ministry of Industries and Production.
The meeting also decided that copies of the provincial legal frameworks shall be provided to the representative of the Law and Justice Division who would give his detailed overview about their efficacy and suggest amendments in the light of international best practices.
The sources said Power Division has been requested to share its views on clause 24(2) of the draft Gems and Jewelry Development Authority Act.
Copyright Business Recorder, 2024