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South Korea Reduces Diamond Tax
Feb 6, 2019 8:00 AM
By Rapaport News
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RAPAPORT... The government of South Korea has abolished a 26% individual
consumption tax (ICT) on the import of polished diamonds, following talks with
its bourse.
In December, the government agreed to simplify the tax
system for diamond importers by replacing it with a 5% import tax and a 10% value-added
tax (VAT), the World Federation of Diamond Bourses (WFDB) said Tuesday. That came after a five-year discussion with the Korea Diamond Exchange (KDE), the WFDB added.
“We hope that the abolition of the ICT and simplified taxes
will have a very positive effect on diamond-jewelry sales in South Korea,”
bourse chairman Nam Chang-Soo said Tuesday. “I believe that we will see a big
increase in sales of polished diamonds and of diamond jewelry.”
The amended tax structure will likely also lead to increased
tax revenue, as more diamonds will enter the country via official chanels rather than through illegal routes, he explained.
Annual sales of polished diamonds in South Korea amount to approximately $2.5 billion, while sales of diamond jewelry come to about $5
billion, Chang-Soo added.
Image: Polished diamonds. (De Beers)
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Tags:
Diamond Tax, Korea Diamond Exchange, Nam Chang-Soo, Rapaport News
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