The Executive Committee to Develop Export Capacity under the Thai government passed a bill containing tax measures to liberalise the import of gems and jewellery into the country on 24 May 2016.
Specifically, the legislation includes:
- Exemption of VAT permanently for import of finished diamonds and gemstones;
- Exemption of VAT permanently for import of rough stones for manufacturing and sale;
- Exemption of import duty permanently on machinery and tools that enhance manufacturing efficiency, and essential materials such as polish blades and diamond dust; and
- Exemption of import duty permanently for silver and gold chain coils and rolls.
According to Thai Gem and Jewelry Traders Association (TGJTA), discussions are still ongoing for establishing a diamond and colour stone exchange for gems and jewellery trading, and the establishment of a more workable gems bank.
Somchai Phornchindarak, president of Gems, Jewelry and Precious Metal Confederation of Thailand (GJPCT) said: “It allows us to attract more buyers and sellers to gems and jewellery tradeshows.” He added that the legislation is the result of extensive and far-ranging discussions with the government by both GJPCT and TGJTA over a number of years.
Suttipong Damrongsakul, president of the TGJTA, is confident that with the continuing support of the government, Thailand can become Asia’s gems and jewellery hub.“The passing of these tax incentives represents a major step that will benefit Thailand’s gems and jewellery manufacturers and traders,” he said. “It will also simplify procedures for international traders doing business in the country.”
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