Antwerp World Diamond Center (AWDC) reported on the government's decision to introduce a taxation system based on a lump sum payment. "Diamantaires are ready to pay more taxes in exchange for financial predictability and clarity in the field of legislation," said AWDC CEO Ari Epstein.
Under the new rules, diamantaires will pay a tax tied to a fixed percentage of turnover from revenue and losses, instead of the old system, in which only revenue was accounted for. Diamond traders will have to pay a larger tax amount than they pay now, but such a scheme will provide the necessary stability and clarity in the sphere of legislation.
Continuation of the activities of Antwerp as a center for diamond trading depends mainly on those companies that conduct long-term operations in this segment. Unclear and often unfriendly financial environment has caused many diamond traders not to sell their goods in Belgium, and instead choose other diamond trading centers - Dubai, India, Israel or Hong Kong.
Clarity in the field of legislation, which appears with the introduction of new tax mechanisms, will provide greater interest in increased trade turnover and profits in Belgium from diamantaires. Thus, diamond traders will have more opportunities to obtain financing, which is necessary for the financial soundness of their companies.
"As the new taxation system is based on turnover and not on revenue, diamond traders will know exactly what to expect at the close of the financial year," Epstein said. "We understand that the state requires additional efforts from all types of industry, especially given the current as an organization representing the interests of the whole group, we will try to defend the interests of our members in exchange for clarity in the sphere of legislation and a stable financial environment. "