Economy and Stock Exchange

Gold Division: Increasing the gold workmanship tax will not affect prices

Engineer Hani Milad Gayed, head of the General Division for Gold and Gold Works in the General Federation of Chambers of Commerce, confirmed that the increase in the value of the value-added tax on workmanship, which the division announced the start of its application a few days ago, based on the assignments of the Tax Authority, will not affect the prices of goldsmiths in the markets and the consumer will not feel it. The final, indicating that the increase in the value of the mentioned tax will be applied to the value of workmanship only and not the entire value of the piece of jewelry, and the value of the tax for the product is included in the production costs.

Jaid explained in today’s statement, that this increase was agreed upon between the division of the General Federation of Chambers of Commerce and the Tax Authority to achieve tax discipline in a manner that achieves the interest of producers and dealers of goldsmiths in the presence of a specific mechanism for tax accounting, and also guarantees the tax rights and the state treasury in the collection of tax returns commensurate with With market movement and price change.

Regarding the value of the tax after the prescribed annual increase, Milad said that the Tax Authority’s letter No. 1 issued on 19/6/2022 stated that according to what was agreed upon between the authority and representatives of the Division of Gold, Silver and Platinum Handicrafts Merchants and Makers, provided that the average operating values ​​are increased ( Workmanship) at a rate of 10% annually for local crafts from 1/7/2022 until 30/6/2023, indicating that the tax is collected upon stamping to cover the manufacturing stage and the rest of the trading stages.

The tax letter also included that the value of the tax will be applied according to the following table:

First gold:

Carat 23.5 grams: VAT 9.24 pounds

21 carat grams: VAT 6.16 pounds

18 karat grams: the added value is 9.24 pounds


Second, the silverware:

925 caliber gram: 1.54 pounds

900 grams: 1.39 pounds

800 grams: 1.23 pounds


Third, platinum:

Double the average value of the 18-carat workmanship: the tax value is 18.48


Fourth, precious stones and diamonds:

Double the average value of the 18-carat workmanship: the tax value is 18.48

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