Gold jewellery export tax rise likely

14-Nov-2014 Intellasia | TBKTSG | 6:00 AM Print This Post

The export tax on gold jewellery and other products with a gold concentration of over 95 percent may rise from 0 percent to 2 percent, according to a draft circular of the Ministry of Finance.

The ministry said the proposed export tax adjustment came at the request of deputy prime minister Vu Van Ninh in Document 1831/VPCP-KTTH issued on September 30 to make clear tax policy for gold.

However, an export tax hike might not leave adverse impact on exporters of gold jewellery.

For instance, Phu Nhuan Jewellery Company (PNJ), the biggest gold jewellery exporter by volume, normally uses gold with less than 80 percent purity to make jewellery. Meanwhile, other firms, including Saigon Jewellery Company, do not export jewellery.

In fact, jewellery with a gold concentration of over 80 percent was slapped with an export tax of 10 percent in 2011 to prevent crude jewellery from being exported due to the low domestic price compared to the global level.

Early this year, the Ministry of Finance imposed a zero tax on gold jewellery exports no matter how much gold concentration is in a bid to encourage jewellery exports. Nevertheless, firms have shown little interest in this as the domestic gold price is always VND3-6 million a tael higher than the global level. A tael equals to 1.2 troy ounces.

 


Category: Finance, Vietnam

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