Thousands of jewelry shops pull down shutter
Güncelleme Tarihi:
by Ayşegül Akyarlı Güven - Hürriyet
Oluşturulma Tarihi: Mart 16, 2009 00:00
ISTANBUL - The jewelry industry of Turkey needs the government to ease taxes on jewelry sales in order to weather the crisis with minimum damage. Annulling the 20 percent private consumption tax implemented on diamond sales would be quite beneficial also for the government, says Alaattin Kameroğlu, chairman of the Istanbul Chamber of Jewelry
Nearly 2,000 jewelry shops have had to pull down their shutters since the beginning of the global economic crisis. The valuable stones and metal industry worth $10 billion is currently trying to revive domestic demand in order to survive the negative climate.
"If the government changes its tax policy then registered transactions in the valuable stones sector would increase 400 percent," said Istanbul Chamber of Jewelry Chairman Alaattin Kameroğlu. "That would mean the government’s earnings would grow four-fold."
Sharp decline in capacity utilization
The industry embodies 3,000 producers, 500 wholesalers and 25,000 retailers. The jewelry industry’s export oriented capacity utilization dropped to 20 percent this year compared to 50 percent last year.
The production companies have managed to remain operational so far by implementing "15 days on 15 days off" method. With that method the industry is hoping to overcome the times off crisis without resorting to lay offs. Although it helps, the method does not prevent lay offs completely. Production companies have already laid off approximately 3,000 people.
In 2006, Turkey used to import 196 tons of gold. That figure rose to 250 tons in 2007 only to decline to 163 tons in 2008. Currently the jewelry industry in Turkey barely imports any gold. Each year 400 tons to 500 tons of gold is embroidered in Turkey.
The country’s annual diamond import, on the other hand, reaches 107,000 carats. Considering the fact that there are quite a few unregistered operations in the industry, one can assume the actual import figure to be around 1 million carats, said Kameroğlu.
Annulling the 20 percent private consumption tax implemented on diamond sales would be quite beneficial for the government, he said. Taxes from employment and income would provide the company with higher income as well as increasing competitiveness among the industry players, said Kameroğlu.
Jewelers meet in Istanbul
The grand opening of Istanbul Jewelry Show-I organized by Rotaforte International Trade Fairs and Media will open its doors for the jewelry enthusiasts on Wednesday, March 18, at the Istanbul Expo Center, also known as CNR Expo.
This is the 28th time this fair has been organized in Istanbul, creating a platform for all players of the jewelry industry, including jewelry and watch manufacturer’s suppliers, wholesalers, exporters and importers , retailers and designers, to get together. The fair will stay open until Sunday, March 22.
As one of the largest jewelry exhibitions held worldwide, Istanbul Jewelry Show I-2009 is expected to attract more than 30.000 local and international professional visitors and is hosting more than 1,100 participant companies.
The fair is supported by Istanbul Mineral and Metals Exporters’ Association, or IMMIB, Turkish Association of Jewelry, or TAJ, and authenticated The Global Association of the Exhibition Industry, or UFI.
"If the government changes its tax policy then registered transactions in the valuable stones sector would increase 400 percent," said Istanbul Chamber of Jewelry Chairman Alaattin Kameroğlu. "That would mean the government’s earnings would grow four-fold."
Sharp decline in capacity utilization
The industry embodies 3,000 producers, 500 wholesalers and 25,000 retailers. The jewelry industry’s export oriented capacity utilization dropped to 20 percent this year compared to 50 percent last year.
The production companies have managed to remain operational so far by implementing "15 days on 15 days off" method. With that method the industry is hoping to overcome the times off crisis without resorting to lay offs. Although it helps, the method does not prevent lay offs completely. Production companies have already laid off approximately 3,000 people.
In 2006, Turkey used to import 196 tons of gold. That figure rose to 250 tons in 2007 only to decline to 163 tons in 2008. Currently the jewelry industry in Turkey barely imports any gold. Each year 400 tons to 500 tons of gold is embroidered in Turkey.
The country’s annual diamond import, on the other hand, reaches 107,000 carats. Considering the fact that there are quite a few unregistered operations in the industry, one can assume the actual import figure to be around 1 million carats, said Kameroğlu.
Annulling the 20 percent private consumption tax implemented on diamond sales would be quite beneficial for the government, he said. Taxes from employment and income would provide the company with higher income as well as increasing competitiveness among the industry players, said Kameroğlu.
Jewelers meet in Istanbul
The grand opening of Istanbul Jewelry Show-I organized by Rotaforte International Trade Fairs and Media will open its doors for the jewelry enthusiasts on Wednesday, March 18, at the Istanbul Expo Center, also known as CNR Expo.
This is the 28th time this fair has been organized in Istanbul, creating a platform for all players of the jewelry industry, including jewelry and watch manufacturer’s suppliers, wholesalers, exporters and importers , retailers and designers, to get together. The fair will stay open until Sunday, March 22.
As one of the largest jewelry exhibitions held worldwide, Istanbul Jewelry Show I-2009 is expected to attract more than 30.000 local and international professional visitors and is hosting more than 1,100 participant companies.
The fair is supported by Istanbul Mineral and Metals Exporters’ Association, or IMMIB, Turkish Association of Jewelry, or TAJ, and authenticated The Global Association of the Exhibition Industry, or UFI.