Thailand will be the next global jewelry center

March 18, 2023

The Thai cabinet recently passed a number of issues aimed at supporting Thailand to become a world-renowned jewelry trading center, which set the direction for Thailand to become the next global jewelry center. In addition to tax incentives such as import duties and value-added tax, a total of 30 billion baht of loan support will be provided to local Thai jewelry processing companies.

泰国,珠宝首饰

The Thai cabinet discussed at the 17th regular meeting a series of topics aimed at supporting Thailand to become a world-renowned jewelry trading center. The government's support will consist of two parts: tax rate concessions and loan support. The tax rate includes the following sections:

1. Exempt import tariffs on imported jewelry materials. Import tariffs on semi-finished jewellery and cost goods were reduced from the previous 20% to 10%. (Includes diamonds, precious stones, and valuable metals and their components, etc.). Exemption from import duties on exhibitors participating in the two-year Bangkok Jewelry Show.

2. Exempt the 1% income tax prepaid by the individual's first jewellery bid.

3. Exempt the VAT involved in the import trade of personal jewellery and raw materials. This includes exempting import tariffs on raw materials related to jewellery and import tariffs on semi-finished jewellery that need to be reworked in China.

For loan support, the government will provide SMEs with a total of 30 billion baht discount low-interest loans. The loan will be provided by the Savings Bank to the financial institutions with a loan of 01% per annum. The SMEs that need the loan will apply for the loan directly to the commercial bank. The estimated annual interest rate will not exceed 4%.

The cabinet resolution also requested that the above resolutions come into effect on the 20th of this month. In order to stimulate jewelry SMEs companies to accelerate investment support, upgrade machines to increase capacity and technology.

Although the government may lose 324 million baht per year, it can increase the total value of the Thai jewellery industry from $13.396 billion to $17.024 billion in the next three years.

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