Antwerp: Belgian newspaper Gazet van Antwerpen reports that Belgium’s Federal Council of Ministers has finalized and approved the legislative framework accompanying the budget proposal, including the new tax proposal for the diamond industry.

According to Belgium’s Minister of Finance, Van Overtveldt, the new tax system, calculated as 0.55% of turnover, will result in an additional €50 million in tax revenue, which is double the amount of taxes currently paid by the diamond industry.

According to Antwerp industrialists, for many diamond dealers the new tax system means doubling and even tripling of tax payments. So far, they were about 20 million euros per year. The Antwerp industry is said to be willing to pay more taxes in return for greater financial predictability and legal certainty.

Before the system may enter into force, the European Commission will examine the new legislation in order to make sure that it is not a covert form of State aid.