Most businesses jewelery industry in India belong to the informal sector and the organized segment accounts for only 30% of total trade in gold. Therefore, experts believe that the industry may need more time to transition to the new tax regime.
"Behavioral change is necessary both for the consumer and for traders Moreover, the complexity of the supply chain must be considered in any such an abrupt transition, and should depend on the final tax impact and the rules." - said the managing director of WGC India PR Somasundaram (Somasundaram PR).
Despite fears of a disruption in trade due to the new tax regime, Somasundaram said that the tax would be "extremely useful to the industry," since it will reduce the illegal trade in gold, providing a more transparent system.
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The Organizing Committee of the gems fair in Arusha, Tanzania, said that the production of precious stones in the country and Africa as a whole is in a downtrend, but specific figures was not made public.
Committee chairman Peter Pereira (Peter Pereira) said that investments in this sector have fallen as demand for the gems, which is reflected in their business.
"But [Africa] is the source of (mineral), and we believe that the situation [corrected]", - he added. - Africa has always surprised us all with something special, such as how recent discoveries sapphires from Madagascar and rubies from Mozambique. "
The low level of production of tanzanite in the country, in particular, has been associated with high operating costs.
Audit Agency mineral Tanzania resources (TMAA ) in their reports for the years 2012-2015, published in September last year, showed that the profitability of tanzanite production was negative, including investment costs in order to maintain future production.
According to reports, TanzaniteOne mining eV Stegeman revenue decline from $ 16.10 million in 2012 to $ 4.48 million in 2015.
Analysts believe that in weak earnings fault of the government, which has decided to ban the export of unprocessed tanzanite weighing more than 1 gram in 2012.
The report also indicates TMAA that the volume of unprocessed tanzanite, which was produced in 2012 and sold on the world market, was 2.46 million carats, and a single cut stone sold was not.
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