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RAPAPORT... India's Finance Minister Palaniappan Chidambaram announced May 3, 2007 that the country is scrapping its import duty on cut and polished diamonds.
In his budget speech to Parliament, Chidambaram said the tax wouldl be reduced from 3 percent to zero.
He qualified the announcement by saying that the government would review the decision if it has a negative effect on the local industry.
Officials from the Finance Ministry's tax research unit explained that the move comes as part of an overall strategy to make India a hub for cut and polished diamonds.
A Finance Ministry official added that they would be notifying importers through the night and that by latest May 4, the amendment would take effect.
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