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First SCT-free Diamond Trade on Borsa İstanbul Diamond and Precious Stone Market

02 October 2014 - 15:19

The first Special Consumption Tax (SCT)-free precious stone trade has been realized on Borsa İstanbul Precious Metals and Diamond Markets. Diamond, one of the most valuable commodities in the world, started being traded on Borsa İstanbul Diamond and Precious Stone Market at the first session on Tuesday, September 30, 2014.

The first Special Consumption Tax (SCT)-free precious stone trade was held at Borsa İstanbul Precious Metals and Diamond Markets on Tuesday, September 30, 2014. The first trade following the lifting, by the Omnibus Bill, of the Special Consumption Tax of 20% applicable on jewelry manufacturers was realized on the Diamond and Precious Stone Market.

İstanbul Precious Metals and Jewelers Association Chairman Ayhan Güner, who completed the first diamond purchase amounting to US$ 284,000 on Borsa İstanbul Precious Metals and Diamond Markets, said that the government offers the required support for jewelry exporters in order to help exports, and went on to say,

"Turkey has overcome the fear against valuable commodities such as gold and diamond. From now on, precious stones such as rough and polished diamonds will be subject to registered trading. Borsa İstanbul Members will be able to trade diamonds on Borsa İstanbul Precious Metals and Diamond Markets without being subject to any taxes. Those who intend to buy diamonds for exports will keep their competitive advantage”.

Noting that the Belgian precious stones market has an annual turnover of US$ 58 billion, and Israel market, a turnover of US$ 17 billion, Güner said that the Turkish jewelry sector is set to have an effective position globally.

“SCT is fully lifted. That’s a good arrangement”

Borsa İstanbul Executive Vice President Çetin Ali Dönmez said that lifting the SCT is a good arrangement, adding, “Trades on Borsa İstanbul between Members are now exempt from VAT. Special Consumption Tax on precious stones is lifted. This is a good arrangement. I believe that the sector, in addition to the 122 market-member companies, will show greater interest for membership. We are planning to make a further discount on membership entry fees. We want the sector representatives to come and become members”.

Dönmez added that the new arrangement will significantly encourage non-registered companies to register their operations.

Dönmez said that Precious Metals and Diamond Markets will move from Karaköy to Kuyumcukent, adding, “We are about to leave here. We are having a separate building constructed in Kuyumcukent. Before moving to that building, we will be operating in Kuyumcukent temporarily. We are also working on some practices which will please the tradesmen of the Grand Bazaar”.