Now Reading: India Proposes 15-Year Tax Exemption for Rough Diamond Traders
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India Proposes 15-Year Tax Exemption for Rough Diamond Traders
The Taxation and Other Laws (Amendment) Bill, 2026, proposes a 15-year income tax exemption for eligible foreign companies trading rough diamonds through Special Notified Zones. The exemption would cover income from sales…
The Story in Brief
The Taxation and Other Laws (Amendment) Bill, 2026, proposes a 15-year income tax exemption for eligible foreign companies trading rough diamonds through Special Notified Zones. The exemption would cover income from sales between October 1, 2026, and March 31, 2041. The measure includes sightholders, brokers, aggregators and auction entities, and applies to unworked, sawn, cleaved and bruted stones.
The Economic Times reports that the plan aims to help Indian manufacturers buy directly from miners, auctions and traders under a more competitive tax regime. The Gem and Jewellery Export Promotion Council welcomed it. Industry representatives want compliance rules, Foreign Trade Policy changes and customs amendments ready before implementation at Bharat Diamond Bourse and Surat.
The Indian Opinion
Claims that India will quickly become a global rough diamond hub would be premature. A tax break can improve the pitch, but traders will also weigh customs speed, compliance costs and certainty in the notified zones. The more cautious claim that the policy will change nothing is also untested. The practical verdict will come from trading volumes and participation after the rules take effect, not from industry statements alone.
Source: economictimes.indiatimes.com
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