Industry experts believe that 5% VAT on diamonds in UAE, which has emerged as the world’s largest diamond trading hub after Antwerp, will have a huge cost implication on the Indian importers of rough diamonds and those selling polished diamonds in the UAE.
If the 5% VAT is made applicable in the UAE, then the diamond importers in India will have to shell out 5.25% tax on the value of rough diamonds, given the Indian government introducing 0.25% GST on the import of rough diamonds.
Peter Meetus, Chairman of the Dubai Diamond Exchange (DDE) said “The possible cost implications of a VAT introduction for UAE traders are huge. In a business where profit margins are very thin, every quarter of a percent is important for traders handling billions of dollars to decide where to ship the goods”.
Source Credit: The Times of India
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