Vietnam likely imposes 10% tax on gold jewelry export

Vietnam may impose a tariff of 10% on gold jewelry export in an effort to prevent local firms from exporting bullion under the form of jewelry products with low purity, said Ngo Huu Loi, Head of Tax Policy Department under Ministry of Finance.

Vietnam may impose a tariff of 10% on gold jewelry export in an effort to prevent local firms from exporting bullion under the form of jewelry products with low purity, Ngo Huu Loi, Head of Tax Policy Department under Ministry of Finance was quoted as saying by local media Tuoi Tre.

Specifically, exports of jewelries with a gold purity of above 80% should be imposed a 10% tax, Loi said, adding that the department has completed drafting amendments to the Circular No. 184 guiding tariff on gold of purity between 90% and 99.99% and gold jewelry of above 99% purity only.

The amendments are under consideration of the ministry and will be soon legalized, he noted.

Currently, jewelries with a gold content of below 99% currently are imposed 0% tax rate, encouraging local firms to process gold bars into gold jewelry with a purity of 98.5% or lower to avoid tax.

From May 16 to June 8, Vietnamese firms illegally exported about 12,5 tons of gold, equivalent to $520million, via entry ports at international airport Noi Bai and Tan Son Nhat, the State Bank of Vietnam (SBV) said.

Vietnam’s export turnover of gold and precious metals was estimated at $630 million in June and $1.027 trillion in the first half of 2011, mostly coming from gold, the General Statistics Office reported. – Stoxplus.com

Tags: Vietnam gold exports