VAT Taking Heavy Toll on Gold, Jewelry Businesses

Over the past two years, as many as 4,200 gold and jewelry businesses have closed shops across the country, said a board member of Gold and Jewelry Employers’ Association of Tehran Province, Hossein Pendarvand. “In Tehran alone, 750 businesses were shuttered, which is mostly due to the 9% value added tax imposed on gold and jewelry sales,” IRNA quoted the deputy head of Iran Gold and Jewelry Union, Ayat Mohammad Vali, as saying.

Businesses, according to the official, want VAT to be levied on fees they charge for making the jewelry only. Noting that the VAT system has eroded the competitive edge of domestic gold and jewelry producers, Vali said Turkey has already taken advantage and is taking over the Iranian market.