According to Shanghai municipal government, China new diamond taxation policy will be officially announced soon. At an interview with an official from Diamond Administration of China (DAC), two points about the new taxation policy were mentioned while no policy details were revealed.
“Firstly, the government’s aim is to regulate the diamond trade in China, especially at the import & export stage. Following the previous adjustments on diamond import taxation policy, the coming new policy shows the government’s attention and support to the diamond trade market.
Secondly, with the implementation of the new taxation policy, there will be the strengthening of government’s supervision. Specifically, there could be risks on the return of Value Added Tax (VAT). The government will apply some corresponding measures to control the risks and ensure a fair, just and open business environment for the diamond dealers in China.“