By WICHIT CHAITRONG
THE NATION
Published on June 30, 2009
The government has given the green light for the jewellery industry to pay a 1-per-cent withholding tax on imported raw materials instead of the present 7-per-cent value-added tax (VAT).
The change is aimed at lowering the industry’s tax burden and promoting Thailand as a business centre for precious stones and jewellery.
Prime Minister Abhisit Vejjajiva said the move would also boost the industry’s competitiveness in export markets.
Small and medium-sized exporters have complained that claims for VAT refunds on raw materials used in producing products for export are time-consuming and complicated.
The jewellery industry is one of the country’s four biggest foreign-exchange earners, employing 1.1 million people and generating annual revenue of Bt280 billion.
Finance Minister Korn Chatikavanij said his ministry would propose the tax change to the Cabinet next month, so that it can be implemented.
Tags: industry's tax burden, jewellery industry, precious stones, withholding tax
