Vafi proposes to impose 10pct VAT on gold trading activities

Vietnam Association of Financial Investors (Vafi) has recently proposed measures to fight against the “goldenization” in the economy by imposing 10% value added tax (VAT) on gold and gold jewellery trading activities.
According to Vafi, gold bullion management experience of some countries in the world showed trading activities of gold and gold jewellery must be subject to VAT from 10% to 15% on the selling price.

Some other countries such as Russia even levy a special consumption tax of up to 20% on this metal. In foreign countries, the gold bars are not being shown for sale due to high taxes and gold bars and gold jewellery are considered consumer goods, so it is subject to the tariff equivalents. This tax policy helps the market avoid manipulation, speculation and hoarding of gold.

Currently, the Ministry of Finance (MoF) is consulting the functional bodies to issue circular on VAT for credit institutions. According to the draft circular, trading activities of gold, silver, gems and foreign currencies may be subject to tax rate of 10%.

Accordingly, subjects of 10% VAT will be banking services, including payment, service provision on preservation of precious and valuable papers and leasing service of safes and pawning. In addition, services for securities trading activities of foreign investors also may be subject to the aforementioned tax. – Vietbiz24

Tags: vietnam gold, Vietnam gold imports, Vietnam gold market

Posted by VBN on Sep 21 2011. Filed under Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry