South Africa approves draft diamond export bill

The South African government on Wednesday approved the draft Diamond Export Levy Bill which was intended mainly to support local beneficiation of rough diamonds.

A national treasury statement distributed at a post-cabinet media briefing said it approved the draft bill for public comment and subsequent tabling in the parliament.

Among other things, the bill proposed a five percent export levy on rough diamonds that should contribute towards local beneficiation, but was low enough not to unduly encourage smuggling. The levy would replace the current 15 percent export levy.

The bill contained relief measures that might offset the five percent levy in full or in part.These included import credits on rough diamonds and ministerial exemptions.

Government communications head Themba Maseko told the briefing the minerals and energy department and national treasury had been mandated to develop and publish guidelines on all exemptions, relief and the exercise of other discretionary powers before the bill's enactment.

"These guidelines will provide certainty for the industry and potential investors," he said.

The bill is available on the treasury's website and the period for public comment closes on October 31. The bill will be tabled in parliament in early November.

Source: Xinhua