The tax regimes in the four major diamond midstream trading centers - Antwerp, India, Dubai and Israel - have been the topic of great discussion and significant change in recent years. The beginning of this year saw the tax policies in both Belgium (Antwerp) and Israel (Tel Aviv) change. These countries levied a minimum tax on diamond companies, which was levied as a percentage of the turnover. While this was termed as a “turnover-based tax”, it was never truly a turnover-based tax.
Industry representative body Antwerp World Diamond Centre (AWDC) is confident that the adoption of a new fiscal Diamond Regime - commonly known as the 'Carat Tax' - will give a new impetus to the Antwerp diamond industry and will attract new companies to the diamond capital, or encourage those that had left to return, writes Belgian daily De Tijd. Antwerp's diamantaires recognize their tax burden will increase, "But we accept this fact," said one prominent trader. "Our main concern is legal certainty," which the Carat Tax will provide.
By Chaim Even-Zohar. Reprinted from Diamond Intelligence Briefs by special arrangement. Click here to read the first article.
By Chaim Even-Zohar. Reprinted from Diamond Intelligence Briefs by special arrangement. Read the second part of this article here.
IDEX India conducted a wide-ranging interview with Russell Mehta, vice chairman of the Gem and Jewelry Export Promotion Council (GJEPC), and CEO of Rosy Blue (India), about the current state of affairs in the Indian diamond industry. The single biggest challenge, according to Mehta, is the ‘ease of doing business’.
By Chaim Even-Zohar. Reprinted from Diamond Intelligence Briefs by special arrangement.
The phone went silent. I had just outlined the underlying principles of the new turnover tax contemplated for Antwerp’s diamond sector to an Indian friend in Dubai – it made him speechless. When he finally did speak, he said: “Wow, if what you say is true, then we can come back to Antwerp. There would be no reason whatsoever to be here in Dubai. We’ll be close to my children again.”