The Finance Ministry (MoF) has increased the export duty on goldjewellery of more than 95 percent purity from zero to two percent.
Thedecision was announced in the MoF's amended Circular 36, issued onMarch 23, which said the new duty would take effect on May 7, 2015.
TheMoF said it aimed to implement Deputy Prime Minister Vu Van Ninh'sdirective on gold duty, which was also requested by the tax policydepartment in 2014.
Meanwhile, the amended circular has maintained zero percent duty on gold jewellery of 95 percent purity or less.
InNovember, 2014, the Vietnam Gold Trades Association (VGTA) asked theMoF not to increase the duty because it would affect the local goldbusinesses.
VGTA said local businesses had no access to domesticbank credit, even though they had to pay a higher price for rawmaterials for their production.
On March 27, the price of one tael (1.205 ounce) of gold in Vietnam was 218 USD higher than the world market price.
Since May 2012, SBV has been the only gold importer in Vietnam. This was done to manage the local gold market.
As a result, local businesses could not import gold to lower their production costs.
Theassociation said foreign competitors such as China, Thailand, Indonesiaand India not only had better technology, but also were allowed toimport gold, with no export duty being imposed on gold jewellery.
However,the MoF found that the increase in export duty would not affect localbusinesses as most of them made jewellery with gold that was less than95 percent pure.
Phu Nhuan Jewellery Company (PNJ), theenterprise with the largest gold jewellery export revenue in Vietnam,told local media it used gold of less than 95 percent purity to makejewellery.
The amended circular also appointed organisations thatcould measure the gold content in jewellery sold in the domestic market.They comprise two centres of quality assurance and testing under thescience and technology ministry, DOJI Institute and Laboratory forGemology and Jewellery, ACB and organisations with permission from thedirectorate for standards, metrology and quality.-VNA
Thedecision was announced in the MoF's amended Circular 36, issued onMarch 23, which said the new duty would take effect on May 7, 2015.
TheMoF said it aimed to implement Deputy Prime Minister Vu Van Ninh'sdirective on gold duty, which was also requested by the tax policydepartment in 2014.
Meanwhile, the amended circular has maintained zero percent duty on gold jewellery of 95 percent purity or less.
InNovember, 2014, the Vietnam Gold Trades Association (VGTA) asked theMoF not to increase the duty because it would affect the local goldbusinesses.
VGTA said local businesses had no access to domesticbank credit, even though they had to pay a higher price for rawmaterials for their production.
On March 27, the price of one tael (1.205 ounce) of gold in Vietnam was 218 USD higher than the world market price.
Since May 2012, SBV has been the only gold importer in Vietnam. This was done to manage the local gold market.
As a result, local businesses could not import gold to lower their production costs.
Theassociation said foreign competitors such as China, Thailand, Indonesiaand India not only had better technology, but also were allowed toimport gold, with no export duty being imposed on gold jewellery.
However,the MoF found that the increase in export duty would not affect localbusinesses as most of them made jewellery with gold that was less than95 percent pure.
Phu Nhuan Jewellery Company (PNJ), theenterprise with the largest gold jewellery export revenue in Vietnam,told local media it used gold of less than 95 percent purity to makejewellery.
The amended circular also appointed organisations thatcould measure the gold content in jewellery sold in the domestic market.They comprise two centres of quality assurance and testing under thescience and technology ministry, DOJI Institute and Laboratory forGemology and Jewellery, ACB and organisations with permission from thedirectorate for standards, metrology and quality.-VNA
