PGJDC makes Efforts to Improve Regulatory Environment Favorable for the Sector

Duty and tax free import of gold, silver and other precious metals and gemstones

The efforts made by PGJDC have borne fruit in terms of considerable improvements in the regulatory regime. Export of jewellery and import of precious metals and gemstones is regulated under SRO -266(I)/2001 dated 7th may 2001, of the ministry of commerce. PGJDC has made successful interventions with the ministry of commerce. As a result, significant improvements have been notified in the trade policy 2008-09.

Initially, SRO-266/2001 catered for gold jewellery only. Later, it covered silver and platinum jewellery. In the trade policy2008-09, government announced that it will allow imports without customs duty on gold, silver, platinum and palladium as well as diamonds and precious stones.

On September 4, 2008, it has been officially notified (vide customs SRO-940(1)/2008).This SRO stipulates addition of the following new tariff lines in SRO -567(I)/2006) dated June, 5.2008, specifying zero customs duty on such items. Importers would be well advised to take note of the procedure to avail the duty elimination. As regards Sales Tax, gold and silver are already exempt as per the sixth schedule under the Sales Tax Act 1990.For zero rating of other precious metals and stones, PGJDC has approached the federal board of revenue for suitable amendments in the Sales Tax law until such amendments, 16% Sales Tax will remain applicable on all the above mentioned metals, except Gold and Silver.

Exemption of sales tax on the import of platinum, palladium, diamonds and precious stones

PGJDC is committed to the development of the Gems & Jewellery sector through its facilitations from mine to market. Easy accessibility and prompt availability of raw materials is one of these endeavours undertaken by PGJDC. An accomplishment in this context was observed on August 6, 2009 through notification of SRO # 720(1)2009. According to the SRO, the import and supply of Platinum, Palladium, Diamonds and precious stones is yet another landmark for the company. It is to be noted that Sales Tax on the import and supply of Gold and Silver has already been exempted as per the sixth schedule under the Sales Tax Act 1990.