SA Rough Diamond Exports: Reduced Levy
June 21, 07
South Africa’s finance minister confirmed in an address to parliament Tuesday that the export levy on rough diamonds will be reduced to five percent from the current 15 percent.
The South African Diamond Export Levy Bill of 2007, which updates the Diamonds Act of 1986, has been tabled by Finance Minister Trevor Manuel.
The 1986 Act provided for relatively generous exemptions, Manuel said, and therefore while the levy is reduced, relief provisions have been tightened.
Manuel warned that the 15 percent tax encourages smuggling. “According to informal police estimates, diamond smuggling costs are between 2.5 percent and five percent of gross diamond values,” the minister told parliament.