(Press Release)
BANGKOK – The Gems, Jewelry and Precious Metal Confederation ofThailand (GJPCT) and the Thai Gem and Jewelry Traders Association (TGJTA) announce that the Thai government has approved tax measures aimed at driving forward the country’s gems and jewelry industry.
Somchai Phornchindarak, president of the Gems, Jewelry and Precious Metal Confederation of Thailand (GJPCT), has welcomed the announcement by the Thai government of a tranche of new measures that will promote the country’s gems and jewelry industry.
On May 24, the Thai government’s special Executive Committee to Develop Export Capacity passed a bill that liberates the import of gems and jewelry into the country.
“These measures represent a huge step forward for the industry,” says Phornchindarak. “It shows how the government and the industry associations are working hand-in-hand to promote the trade of gems and diamonds in Thailand.”
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.
Discussions are still ongoing for establishing a diamond colorstone exchange (bourse) for gems and jewelry trading, and the establishment of a more workable gems bank.
“These measures constitute the liberalization of Thailand’s gems and jewelry trade,” says Phornchindarak. “It allows us to attract more buyers and sellers to gems and jewelry tradeshows, such as the Thailand Gems and Jewelry Fair, and increase investment in Thailand.”
Phornchindarak added that the legislation is the result of extensive discussions with the government by both the GJPCT and the TGJTA over a number of years. “This is a great achievement by the GJPCT and TGJTA. It paves the way for the Thai gems and jewelry industry to grow tremendously in the future,” he says.
It is estimated that previous temporary tax incentives announced earlier this year by the Thai Cabinet will generate at least $109 million for the Thai economy per year, a trend that is set to continue with the new tranche of incentives.
The measures constitute part of the TGJTA’s continuous efforts to implement its five-year plan, namely to:
- Foster a strong relationship with the Royal Thai Government to solve industry challenges together;
- Attract natural resources and raw materials to Thailand;
- Increase both the quantity and quality of skilled manpower;
- Build international relationships to attract foreign traders;
- Open new markets to increase the customer base for members;
- Maintain and secure existing markets;
- Develop the domestic market inside Thailand;
- Create greater sources of finance for SMEs; and
- Promote and encourage greater knowledge-building for members.
Suttipong Damrongsakul, president of the TGJTA, is confident that with the continuing support of the government, Thailand can become Asia’s gems and jewelry hub. “The passing of these tax incentives represents a major step that will benefit Thailand’s gems and jewelry manufacturers and traders,” he says. “It will also simplify procedures for international traders doing business in the country.”
The GJPCT and TGJTA will co-organize the Thailand Gems and Jewelry Fair (TGJF) from September 7-11 at IMPACT, Muang Thong Thani in Bangkok, Thailand. Open to both Thai and international companies, as well as the general public, TGJF is held over an area of 60,000 square meters, consisting of 3,000 booths featuring companies from all over the world. The organizers expect that more than 30,000 visitors will participate at the event.
Somchai Phornchindarak, president of the GJPCT (left) and Suttipong Damrongsakul, president of the TGJTA (right), announce that the Thai government has approved tax measures aimed at driving forward the country’s gems and jewelry industry.