NEWSFLASH

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TAX EXEMPTIONS FOR JEWELRY MAKERS

Manila, Oct. 26, 1997 - Good news for the jewelry industry. Three Senate committee have agreed to exempt gemstones, metals and jewelry raw materials from the 20 percent excise tax and 2 to 10 percent customs duties.

The local jewelry industry, however, was not exempted from the 10 percent value added tax.

Senator Juan Ponce Enrile, chairman of the Senate committee on ways and means, said exempting the industry from VAT will open the door for everybody to ask for exemptions.

The joint hearing of the Senate committees on ways and means, trade and commerce and finance agreed on the exemptions to enable the local jewelry industry to be more competitive. The high taxes, industry leaders say, only encourage smuggling.

Local jewel makers will also enjoy tax exemptions on equipment, tools and supplies.

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