In Thailand, gems and Jewelry industry is expected to rebound this year because of the global economic recovery. The Cabinet of Thailand approves tax incentives so as to make the country as a jewelry trading hub.
Commerce Minister Apiradi Tantraporn said that the performance of Thai gems and jewelry without gold rise by 5% in 2017 to US$7. 32.
Whereas the performance of Thai gems and Jewelry exports was poorer falling by 3% to $6.97 billion. Originally, the Commerce Ministry forecast the gems and jewelry exports, excluding gold to grow by 10% in 2016 to $7.9 billion.
Mrs. Apiradi said that there is a good news for gems and jewelry exports, as the government is reducing the production cost for manufacturers and is also offering the opportunities for the industry to develop new production technology and products.
The government approved tax incentives so as to increase the gems and jewelry exports, including gold to US$17 billion this year.
In this measure, jewelry entrepreneurs will enjoy a twofold corporate tax deduction on expenses that they spend while employing skilled workers.
The main aim of the tax incentive is to attract entrepreneurs so that they can hire skilled workers to maintain Thailand’s uniqueness in jewelry and ornament production.
The cabinet also cuts tariffs for imported finished products to 10% from 20%. They also said that a VAT waiver will be awarded to registered entrepreneurs who import raw materials.
The cabinet also approves the extension of 30 billion Baht soft loans through the Government Savings Bank to all small and medium-sized enterprises until Oct 31, 2017, so that they can upgrade their machinery and productivity.
The GSB has provided this loan to 985 entrepreneurs. The jewelry industry of Thailand is ranked eighth globally by value.
Thailand’s jewelry industry employs more than 900,000 workers and 37,000 operators. This industry is at number eight globally by value. Jewelry is considered one of the top four products that tourists buy.
The Commerce Ministry decided to hold the 59th edition of the Bangkok Gems & Jewelry Fair at Impact Muanf Thong Thani so as to boost the country’s gems and jewelry industry.
One of Asia’s leading trade shows that will bring together 730 companies and 2,011 booths to provide a platform for Thai and International Jewelry designers and manufacturers to display their creations.
Prida Tiasuwan, chairman of SET-listed PrandaJewelleryPLC, said that the prospects for Thai gems and jewelry exports remain promising.