The government has sanctioned a temporary tax break for gems and jewellery sold at the Bangkok Gems and Jewelry Fair in September.
It means local exhibitors will be able to reduce their costs, because they won’t have to pay 20% tax on imported jewellery parts, while foreign exhibitors will benefit from being allowed to sell their products import duty-free.
Previously all exhibitors who imported jewellery for sale at the fair were required to pay 20% import tax and 7% VAT. With the tax break, only the 7% VAT charge will be imposed.
The tax break will last for 15 days before and after the Bangkok Gem and Jewelry Fair and is only available to exhibitors endorsed by the Thai Gem and Jewelry Traders Association (TGJTA).
According to a report in Retail Jeweller magazine, Somchai Phornchindarak, president of the TGJTA and chairman of the Gems, Jewelry and Precious Metal Confederation of Thailand, said the industry is privileged to have the government working with it “so directly”.
“The government has been with us every step of the way, helping to promote exports as well as developing overseas markets via trade fairs, road shows and exceptional exhibitions,” Mr Somchai said.
Suttipong Damrongsakul, chief executive Officer of the Bangkok Gems and Jewelry Fair organising committee, said the move would propel Thailand to become the “golden gateway to the gems and jewellery industry of the Association of South East Asian Nations (Asean) - a region burgeoning with a 600 million population”.
The 52nd Bangkok Gems and Jewelry Fair will take place from Sept 6-10 at Bangkok’s Impact arena. The bi-annual international trade fair takes place in February and September every year.