Sri Lanka, June 8 -- The jewellery industry has suffered a dramatic downturn, with the market shrinking by nearly 75 percent due to the high Value Added Tax (VAT) imposed on gold, according to the Pettah Jewellers' Association.

Association representatives claim that the current tax structure has significantly increased the cost of jewellery, placing a heavy burden on consumers and adversely affecting sales across the country.

They noted that the government currently imposes an 18 percent VAT on gold and labour charges, in addition to a 2.5 percent Social Security Contribution Levy (SSCL). As a result, the price of a pound of gold has risen above Rs. 400,000. Besides, the combined tax burden amounts to approximately Rs. 82,000 per pound ...