Export taxes on gold, including jewelry, will increase from the current zero percent to 10 percent effective January 1, pursuant to a new Ministry of Finance circular.
The higher duties are aimed at reducing unlawful exports by gold trading enterprises which have been accused, in the past, of exporting gold jewellery to dodge regulations that require export licences to export gold at a purity of 99.99 percent.
The decision could help reduce this phenomenon but also make it more difficult for gold trading enterprises to compete with foreign gold suppliers, said Bao Tin Minh Chau Jewelry Co general director Vu Minh Chau.
"The 10-percent tax on processed gold is rather high and it will make locally-manufactured gold jewellery more expensive on overseas markets compared to that of other foreign suppliers," Chau said.
"The ministry's new decision will discourage gold jewellery exports," agreed a representative of a Hanoi-based gold trading enterprise who asked to remain anonymous.
He said his company would have to restructure its business plan and could shift to exporting silver jewellery.
The Ministry of Finance had initially considered a 20-percent tax on gold exports after domestic gold prices hit an all-time high of over 38.2 million VND (1,910 USD) per tael on November 9, but reduced the tax to 10 percent in the issued regulation. A tael is equivalent to 1.2 ounces.
In another move to cool down the domestic gold market, the State Bank of Vietnam has also decided to allow gold imports for the third time this year. Since that, gold prices have settled back to about 36 million VND (1,675 USD) per tael./.
The higher duties are aimed at reducing unlawful exports by gold trading enterprises which have been accused, in the past, of exporting gold jewellery to dodge regulations that require export licences to export gold at a purity of 99.99 percent.
The decision could help reduce this phenomenon but also make it more difficult for gold trading enterprises to compete with foreign gold suppliers, said Bao Tin Minh Chau Jewelry Co general director Vu Minh Chau.
"The 10-percent tax on processed gold is rather high and it will make locally-manufactured gold jewellery more expensive on overseas markets compared to that of other foreign suppliers," Chau said.
"The ministry's new decision will discourage gold jewellery exports," agreed a representative of a Hanoi-based gold trading enterprise who asked to remain anonymous.
He said his company would have to restructure its business plan and could shift to exporting silver jewellery.
The Ministry of Finance had initially considered a 20-percent tax on gold exports after domestic gold prices hit an all-time high of over 38.2 million VND (1,910 USD) per tael on November 9, but reduced the tax to 10 percent in the issued regulation. A tael is equivalent to 1.2 ounces.
In another move to cool down the domestic gold market, the State Bank of Vietnam has also decided to allow gold imports for the third time this year. Since that, gold prices have settled back to about 36 million VND (1,675 USD) per tael./.
