Tax Exemptions For Industry: Cheaper Diamond Engagement Rings

Let’s face it: the road towards marriage is extremely difficult and like it or not, it’s also expensive. When you are already sure that she’s the right one for you and the two of you are ready to take your relationship onto the next level, the next thing you need to do is to browse through the diamond engagement rings inside the jewellery store near you. Now, in case you are traveling to the Kingdom of Thailand anytime soon, then that’s where you shop for an engagement ring or wedding ring for you and your soon-to-be wife. You see, Thailand is on its steady course to become the World’s Jewellery Hub. In fact, the jewellery industry in Thailand is set to be one of the most active and most booming jewellery industries in the world right now especially when we talk about the export value it contributes to the economy of Thailand. Just for the first 10 months of 2016, the jewellery industry of Thailand was able to generate 435 billion Thai Baht worth of total exports, the 3rd highest among all industries in Thailand.

Since last year, the jewellery industry in Thailand has been exempted by the government of the Kingdom of Thailand from paying taxes in hopes of furthermore propelling the industry into new heights. In fact, the Ministry of Finance believed that such exemptions will eventually benefit the kingdom in terms of higher income because lesser taxes to be paid by the industry means lesser taxes to be passed onto the customers. You see, the industry of jewellery used to pay tons of taxes including value added tax for raw materials and semi-finished goods. They also need to pay import duties for raw materials. And, they also need to pay personal income tax for sales of raw materials which can dictate the final prices of diamond engagement rings which vary from 9,000 Thai Baht up to 600,000 Thai Baht. Without those hefty taxes, jewellery stores can now afford to sell diamond rings at a more affordable price, making it easier for more people to buy and own a diamond.