Vietnam gold trader association disagrees with SBV on new proposal

Vietnam Gold Traders’ Association does not share the same view point with the State Bank of Vietnam (SBV) on the central bank’s proposal of reducing taxable gold purity to 80% from current 99%, the online newspaper Thanh nien reported.

The SBV’s proposal will force local firms to cut gold purity further to enjoy duty-free export, yet it may result in higher production costs and a waste of social resources, the VGTA pointed out, adding that the proposed regulation may create favorable conditions for illegal gold export if gold exporters can’t afford higher costs.

Besides, since gold export turnover of over $1.2 billion in H1/2011 helped to narrow trade deficit and stabilize dollar exchange rates, VGTA suggested the Ministry of Finance (MoF) to delay the purity gold cut as proposed by the SBV until the Government releases an official Decree on regulating gold market.

Earlier, the SBV suggested the Ministry of Finance to impose 10% tax rate on exporting of jewelries with a gold purity of above 80% in an effort to prevent local firms from exporting bullion under the form of jewelry products with low purity.

From January 1, 2011, domestic gold exporters were imposed a 10% tax rate on exporting gold with purity of 99,9%, gold jewelry heavier than 1 ounce (over 8 one-tenth tael), and semi-finished gold products, according to Circular 184/2010/TT-BTC. – Stoxplus.com

Tags: vietnam gold, Vietnam gold market, Vietnam gold prices

Posted by VBN on Jul 31 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