The AWDC believes the new tax will being about more predictability and stability, giving diamond trading companies the ease of forecasting their total corporate tax due based on their diamond sales. Also, the secondary effect of the tax will strengthen the capital base of diamond trading companies, improving their access to finance.
The Carat Tax, according to AWDC will help end complex annual discussions over control and valuation of stock, Also the fluctuations in inventory will not impact tax. The new tax structure is expected to generate over three times the tax per year, according to a report by European Commission (EC), as per media reports.
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