Income tax exemption for gem miners

Income tax relief is now available to licenced gem miners in keeping with the Budget proposals relating to the Gem and Jewellery Industry which have been implemented by the National Gem and Jewellery Authority (NGJA)

NGJA Chairman Hasitha Tillekeratne at a meeting attended by Gem Industrialists at the Nivithigala Co-operative Hall recently said to obtain this concession gem miners should submit gems mined to the respective NGJA Regional Office and obtain an auction permit.

Thereafter the gems will be sold by public auction. Out of the total income realised from the auction a 2.5 percent share should be paid to the NGJA as income tax.

The tax receipt obtained from the NGJA can be submitted to the Inland Revenue Department by the gem miner to gain total exemption from income tax.

This tax concession is effective from February 1 this year, Tillekeratne said. The NGJA Chairman also agreed to provide a geuda heat treatment furnace to the Nivithigala Gem Traders' Association for installation in their new headquarters building due to be completed soon.

This was in response to a request made by the Association representatives for a geuda heat treatment facility at their new office building.

NGJA's senior operations manager K.P.S. Dahamsondage said the Authority has planned to conduct awareness programmes of this nature in gem mining areas once in every three months.

The Authority has taken the initiative to release lands for gem mining after negotiations with several institutions including the National Environmental Authority. Accordingly it is hoped to get several plots of lands released including estate lands for gemming in the near future.

Income derived from such auctions will be shared by the Authority and the Plantation Companies on the basis of 60 per cent and 40 per cent respectively.

NGJA Deputy Director General Ajith Perera, Ratnapura Senior Regional Manager W. A. Wimalasena All Ceylon Gem Miners' Association Secretary U.G.Chandrasena and Nivithigala Gem Miners Association Secretary Janaka Attanayake also spoke.