Turkey abolished the special consumer tax of 20% on diamonds, Rapaport News representatives of the country's government said. The new taxation regime was in effect from the middle of September of this year, when new rules were introduced.
In addition, diamonds traded on the Borsa Istanbul Diamond and the Precious Stone Market will not be subject to 18% VAT. Taxes on stones that will be traded outside these sites must be paid in full.
Ayhan Güner, chairman of the Istanbul Precious Metals and Jewelers Association, said in a recent press release that the abolition of the diamond tax burden would allow Turkey to compete as a world diamond trade center with countries such as Belgium and Israel .
Executive Vice-President of the Istanbul Stock Exchange Çetin Ali Dönmez (Çetin Ali Dönmez) reported on the expected increase in the number of active participants of the exchange due to the abolition of the tax on diamonds.
"The new rules will allow many more companies to register their operations," he added.