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9/23/2005
Canadian Jewelers
to Receive Tax Cut
It appears that Canadians
are going to get a nice diamond gift when 2009 comes rolling
around. No, it’s not a new earring for women, and diamond
watches for men, it’s the elimination of diamond taxes. Since
1918 jewelers have been forced to pay tax on diamonds that they
purchased and their un-enthusiasm about will soon come to end.
For years jewelers had been lobbying for the Canadian government
to drop the tax on what people like to call “a girls best
friend”. For years they complained that the tax was unfair and
showed that the committee was against jewelers.
For many years now diamonds
had been the only luxury tax in the country and besides tobacco,
gasoline and alcohol, was the heaviest taxed item. The tax had
many negative effects in the diamond industry; it caused
employees to be depressed, increased the potential of smuggling
jewelry, and made it difficult for growth.
MDL Merchants president Jack
Mimar is very thankful for all who helped change this once
“discriminating tax”. “We thank all clients who helped us in
defeating this tax. Thank you to everyone who wrote letters to
their Members of Parliament, MP. We proved that we can make a
difference”.
Canada had made it clear
that only the rate has changed and that all other rules and fees
involved with importing or exporting jewelry remains the same.
The manufacturer at the time of the sell must pay any fees that
come with purchasing diamonds before any exchange can be made.
Taxes are still imposed
those who make less than $50,000 a year. Also, jewelry that is
either real or fake falls in line with the next tax law. Below
is a chart of how the tax rate will change until it is finally
0% in 2009.
Effective
Date Tax Rate
February 24, 2005 8%
March 1, 2006 6%
March 1, 2007 4%
March 1, 2008 2%
March 1, 2009 0%
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