The government is deprived of receiving the expected tax due to illegal gemstone purchases by the Chinese and Thai.

It was disclosed at the Sectoral Oversight Committee on Environment, Natural Resources, and Sustainable Development that there is a tendency for the government to be deprived of receiving the expected tax due to Chinese and Thai nationals illegally buying local gemstones at very low value from the market.

It was further discussed that, due to this, injustice is being done to gem businessmen who run their businesses fairly by paying taxes to the government.

This matter was taken into discussion at the Sectoral Oversight Committee on Environment, Natural Resources, and Sustainable Development as it met to discuss issues related to import, export, and re-export in the gems and jewellery sector recently in Parliament under the Chairmanship of Ajith Mannapperuma.

Representatives of business associations engaged in the Gems and jewellery sector, officials including the Chairman of the Gems and Jewellery Authority, officials from the Ministry of Finance, Economic Stabilisation, and National Policies, officials from the Sri Lanka Customs, and the President’s Senior Additional Secretary (Agriculture and Environment) were called before this Committee.

Mannapperuma, Chair of the Committee, pointed out that the main expectation of these discussions is to work to restore the prestigious name of Sri Lankan gems among foreign countries and to get foreign exchange from the export and re-export of gems.

Officials representing the Ministry of Finance pointed out that an amended Bill has already been submitted to Parliament to exempt the process from the 2.5% social security tax imposed on the importation of gems for re-export, and the relief is to be given to businessmen in the future.