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The Ministry of Industry, Trade and Labor said it will reduce the nominal tax that it levees on polished diamond imports, by 33 percent from 0.2% to 0.135%.
"The reduction of polished diamond import taxes will help Israeli diamantaires and is expected to help boost Israel's diamond trade," said Avi Paz, President of the Israel Diamond Exchange.
The legislation to cut the import levy on polished diamonds, signed at the end of last week by Eli Yishai, Minister of Industry, Trade and Labor, is expected to be approved by Israel's finance minister in the near future.
"Over the course of the year, we will review the need to further cut the import tax on polished diamonds in view of the significance and contribution of Israel's diamond industry to the overall economy," said Shmuel Mordechai, Israel's diamond controller.