The World Federation of Diamond Bourses (WFDB) President Ernie Blom extended his congratulations to the Israel Diamond Exchange (IDE) President Yoram Dvash and other industry heads of the country on the signing of a major agreement with Israel's Tax Authority. 

The agreement was unanimously ratified by the directors of the IDE and the Israel Diamond Manufacturers Association (IsDMA); and also endorsed by a special assembly of IDE members.

“This is tremendous news for the Israeli diamond trade," said WFDB President Ernie Blom. "I am delighted that many months of intensive negotiations have been successful."

 He added: "The agreement was made possible because the diamond trade was totally open in its approach to negotiations. And because diamantaires will now be in compliance with international financial guidelines, the risk factor for banks is lower and this increases the likelihood that they will be able to secure credit which is so vital to our businesses.”

Blom opined that this move has come at an important development ahead of the financing seminar that will be held as part of the Presidents Meeting to be held in Mumbai from February 5-8, 2017.

"This is the second major tax agreement this year following the implementation of the 'Diamond Regime' tax system in Belgium, known as the 'Carat Tax' following years of discussion between the Antwerp diamond industry and the Belgian government,” Blom said. “This new tax regime puts an end to complex discussions between the Antwerp diamond industry and the tax authorities on the control and valuation of diamond traders' stock. It means that Antwerp's diamantaires will enjoy greater tax predictability with a clear-cut and predictable fiscal regime that applies to diamond trading companies.”

Blom went on to stress: "These are excellent developments for two of our major global diamond centres and can serve as a model for others in how to bring about solutions for bourse members in tax and financing issues by working together with governments and official bodies. We believe that partnerships between industry and government are critical in bringing about positive change."