The Polynesian government recently announced the exemption of local pearl farmers from taxes on pearls, including the specific export duty on pearls (DSPE).
This measure, introduced as part of the economic support plan led by Vice President Teva Rohfritsch, has raised concerns among international market players.
Two black pearl sellers’ associations, based in Hong Kong and Japan respectively, have expressed strong concerns about the potential consequences of this tax exemption. According to them, the removal of the DSPE could lead to a drop in pearl prices on the international market. This duty, which is an export tax, plays a crucial role in filtering out lower-quality pearls and maintaining the average price of pearls at an acceptable level.
The presidents of the Tahitian Pearl Association Hong Kong and the Tahiti Pearl Promotion Society of Japan issued a statement warning the Polynesian government. They emphasized that the temporary removal of the DSPE could lead to an overproduction of low-quality pearls, disrupting market balance and causing a devaluation of unit prices.
According to the associations, this measure also risks harming the credibility of the Tahitian pearl market. Consumers, who are key drivers of the industry, may hesitate to buy pearls perceived as having diminished value. This phenomenon would inevitably lead to a decline in sales, threatening the long-term stability of the industry.
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