Delivering a speech at the 2nd International Gold Summit organized by the Active Academy in İstanbul, Altınbaş noted that the Turkish jewelry sector has made great progress over the last five years. The volume of the sector exceeds $10 billion, he said, stressing that Turkey and İstanbul will eventually become a global gold center thanks to both the dynamic domestic market and increasing demand by neighboring countries.
Altınbaş, emphasizing the necessity of making amendments to regulations that prevent further development of the sector, cited high ÖTV levels as the main obstacle. “The ÖTV on precious metals in Turkey is 20 percent; in comparison, China increased its tax on these goods to 3 percent,” he said. Turkey could replace Belgium, which was once a precious metals center, and become a precious metals center in Eurasia, which will also make an annual contribution of $12 billion to Turkey, he said.
Finance Minister Mehmet Şimşek, also speaking at the meeting through a teleconference link, said the Turkish jewelry sector is among the world’s leading jewelry sectors. Turkey is the second largest gold and jewelry exporter, he said, stressing that firms in the sector have developed significantly over recent years.
“The sector saw exports of $1.5 billion in 2008. This figure is estimated to be around $2.5-$3 billion when taking into account shuttle trade and sales made to tourists in the domestic market. Exports go to more than 140 countries across the world. However, due to a contraction experienced in both the domestic and foreign market, registered exports are expected to fall to $1 billion this year and total sales are predicted to be around $2 billion if we also consider shuttle trade and sales made to tourists in the domestic market.”
Şimşek called on representatives from both the jewelry and banking sectors to take initiatives to ensure the liquidation of gold in under-the-pillow savings, saying that this would boost the growth of the Turkish economy.
