According to the Economic Times, India’s diamond, gem and jewelry business may move from Maharashtra to Gujarat. Leaders of the diamond, gem and jewelry industry are considering the move mainly due to the octroi levy.



The industry is seeking the abolishment of the 2% octroi charged on gems and jewelry brought into Maharashtra. The Economic Times quotes Gems & Jewelry Export Promotion Council (GJEPC) chairman Vasant Mehta: "We demand the removal of the 2% octroi as it would support the industry, which has been undergoing a recession. Due to the octroi, several companies have either shifted or are about to shift their business to neighboring Gujarat."



Mehta added: "The diamond and jewelry industry has faced its worst phase in the last 8-10 months due to global recession and many units have had to shut down. The industry is ready to give an upfront amount equal to the octroi through cess.” Mehta made the statement at the 26th edition of the Gems and Jewelry Trade Show in Mumbai. Some 18,000 domestic and 1,000 international visitors are currently attending the show.



Former GJEPC chairman Sanjay Kothari stated: "The 2% octroi levy on the import of diamonds from Surat is affecting business. Many players will shift their shops either to Surat or Ahmedabad if the state government (Maharashtra) does not abolish the levy."



Kothari noted that the octroi levy is not applicable on export. Industry players have posed the question why Maharashtra has not revoked the old octroi levy system when a majority of other Indian states have already done so.