With the ascent of a new government in Thailand, the country`s jewelers have announced their intention to lobby for the abolition of VAT on raw materials used in the trade.

Vichai Assarasakorn, the President of Thai Gem and Jewelry Traders Association, stated: "The association sees it as necessary to push forward all efforts to convince the new government to waive existing value-added tax (VAT) on raw-material imports to streamline and promote the free flow of trade in raw materials such as precious stones, diamonds and processed precious stones to the Thai market."

He explained that due to the lack of natural raw materials in Thailand and the dependence upon the regular supply of imports, the livelihood of about one million jewelers and craftsmen may be at risk.

Assarasakorn added that Thai`s jewelers are being forced to face rising competition, particularly in the US and Japan, from producers in China and India. Rescinding the tax would make Thai jewelry more competitive.

Gems and jewelry are among Thailand`s main exports. This year alone a 30% increase in export to about $4.8 billion is anticipated in comparison to last year.