The Antwerp World Diamond Centre (AWDC) addressed the Belgian government’s decision to introduce a new tax system that calculates diamantaires’ taxes based on a fixed percentage of their turnover instead of profits and losses. Despite that it means heavier taxes for diamond traders, Ari Epstein, CEO of AWDC said “diamantaires are willing to pay higher taxes in exchange for financial predictability and legal certainty.”
As a result of Belgium’s uncertain and non-competitive fiscal environment, diamond traders often see no reason to realise their turnover and profits inside the country. This had led the Belgian government to lose out on revenue and discouraged trade in Antwerp, which was under threat of losing its leading position as a diamond trade centre.
Viewing the new tax system in a positive light, Epstein commented that “Given the difficult budgetary situation, we understand that the government requires additional efforts from every industry. As a representative organisation, we will try to defend this position to our members in exchange for legal certainty and a stable fiscal environment.” According to AWDC, under the new tax system, financing will be more accessible to diamond traders, which will in turn reinforce the status of AWDC.
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