China cuts VAT on diamond imports.(FACETS)

China has completely eliminated the value added tax (VAT) charged on rough diamonds imported through the Shanghai Diamond Exchange. The previous tax rate was 17 percent, leading to widespread smuggling. The VAT on polished diamond imports has been set at 4 percent, reported China Daily.

China's massive diamond polishing industry is second only to India's in terms of carat weight processed, as some 3 million carats of rough are imported into the country every year. ...

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