22:43, 03-Jan-2018
UAE VAT: Tax likely to affect diamond exports
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Shifting to diamonds now. The diamond sector in Surat, India, will face pressure now that the United Arab Emirates has introduced a value added tax for the first time in the country.
The UAE is the world's second largest diamond trading hub and is one of India's prime exporting destinations. The UAE implemented the five percent VAT on most goods and services to boost revenue. A significant amount of rough diamonds is imported to India from the UAE every year. The valuation of diamonds traded between the two countries stood at $26 billion in 2016 compared to $ 300 million in 2002.