Belgian "Carat Tax" Brings in Under Half its $74m Target
January 03, 23
(IDEX Online) - Belgium's "carat tax" brought in $29.5m in 2020, far less than the $74m the government had expected.
The new regime introduced in 2017, taxes the country's 1,200 or so diamond dealers on 2.1 per cent of revenue rather than profit.
During the 2017 and 2018 tax years the carat tax brought in $84m and $104m, according to Belgian newspapers De Tijd and L'Echo.
That's around three times more than 2015 and 2016, before it was imposed, when diamond traders paid a total of $29m and $31m respectively.
A government report says "the bankruptcy of a group of companies after 2018" was the main factor.
The European Commission, which approved the new tax as fair, said at the time that 75 per cent of diamond dealers would pay more as a result. The carat tax is based on a fixed gross profit margin at 2.1 percent of revenue.
Pic shows the diamond-shaped Port House Antwerp.