Gold faces a taxing time

August 06, 2011 | 11:05

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A new export tax rate for gold will come into force on August 6.

According to the Ministry of Finance’s (MoF) Circular 111/ 2011/TT-BTC dated August 2, 2011, from August 6, all kinds of gold will be subject a common export tax rate of 10 per cent.

A new point is a 10 per cent tax on jewelry with more than 80 per cent gold content instead of jewelry export with 99 per cent gold content.

The new tax tariff was released based on the State Bank’s previous proposal and other ministries, which was approved by the prime minister under Document 804 dated April 26.

The MoF said the new regulation would stop wasting material gold which had made the macroeconomy unstable.

Some gold traders had reprocessed their jewelry products to have good content of less than 99 per cent in an attempt to avoid the tax. As a result, it was necessary to introduce a new rule to stop the practice.

Besidestaxes, the MoF is also considering strengthening customs activities by verifying the quality of the jewelry gold for business with large and irregular export shipments, in addition to checking the receipts to prove the origin and source of goods.

According to the General Department of Customs, export turnover of precious metals and their products reached $1.203 billion for the first six months of the year, and $806.255 million particularly in June, up 133 per cent against the previous month.

The majorityin this category was jewelry gold. With the current material gold price of about $50 million per tonne the exported volume is estimated at more than 14 tonnes in June and more than 24 tonnes in the first six months of 2011.

By Nguyen Trang

vir.com.vn

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