The imposition of a presumptive tax on the diamond industry in Surat has aroused the wrath of the president and members of the Surat Diamond Association (SDA). The tax was levied by the Union Finance Minister in the annual budget.
Members of the SDA are formulating a memorandum which is to be presented to the Chief Commissioner of Income Tax along with a request to rethink the tax.
Diamond businessmen will reportedly be required to declare 6% net profit on the total turnover and pay a 30% presumptive tax at the end of the year.
SDA Joint Secretary Rohit Mehta noted: “The diamond industry is dying day by day as a result of which many of the diamond businessmen have changed their business. This has affected the diamond workers also as they have become jobless and some of them who had migrated to Surat have returned back to their native place. Out of each 100 diamonds in the world market, 76 are cut and polished in Surat and with the imposition of this presumptive tax, it will become difficult for the diamond businessmen to survive.”
