Interviews
Gems & jewelry industry seeks govt attention
26 Dec '07
2 min read
Gems and Jewelry traders of Thailand have been trying their best to pursue the new Government to make the country a tax-free port for foreign imports.
Officials from Thai Gem and Jewellery Traders Association (TGJTA), asserted that insufficient raw materials are forcing local traders to rely on imports but unless supplies of raw material increases, it will be difficult for artisans to sustain themselves.
This year, the industry saw a growth of 20 percent reaching 170 billion baht. However, in terms of dollar, the expected growth was around 30 percent likely to hit US $4.8 billion.
The Association has therefore made an earnest request to the Government, asking it to withdraw the existing value added tax (VAT) on import of raw materials. Only this can encourage the free flow of trade in raw materials like precious stones, diamonds and processed precious stones to the markets in Thailand.
Experts believe that a zero-rate VAT would attract more suppliers giving Thailand an added advantage making raw materials more easily accessible.
Although, Thailand has more than 10,000 gems and jewelry enterprises nearly 90 percent of these are small and medium-sized firms. According to the reports, jems and jewelry remains to be one of the major export items contributing a considerable amount to Thailand's GDP.
Officials from Thai Gem and Jewellery Traders Association (TGJTA), asserted that insufficient raw materials are forcing local traders to rely on imports but unless supplies of raw material increases, it will be difficult for artisans to sustain themselves.
This year, the industry saw a growth of 20 percent reaching 170 billion baht. However, in terms of dollar, the expected growth was around 30 percent likely to hit US $4.8 billion.
The Association has therefore made an earnest request to the Government, asking it to withdraw the existing value added tax (VAT) on import of raw materials. Only this can encourage the free flow of trade in raw materials like precious stones, diamonds and processed precious stones to the markets in Thailand.
Experts believe that a zero-rate VAT would attract more suppliers giving Thailand an added advantage making raw materials more easily accessible.
Although, Thailand has more than 10,000 gems and jewelry enterprises nearly 90 percent of these are small and medium-sized firms. According to the reports, jems and jewelry remains to be one of the major export items contributing a considerable amount to Thailand's GDP.
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