The Viet Nam Association of Financial Investors has urged the Government to impose a 10 per cent value added tax (VAT) on gold trading in a move to stop the precious metal being used for economic payments.
The association said that many countries worldwide taxed the trading of gold bullion and jewellery in order to manage their markets, with Russia even imposing a special consumption tax of 20 per cent on the product.
Such a policy would help countries keep the gold market from manipulation and speculation, the association said, adding that a large amount of money was currently being pumped into gold trading as ‘dead' capital since not being directed to production.
The Ministry of Finance called on relevant ministries to share their views regarding the possible VAT imposition on credit institutions such as gold traders and foreign exchanges.
The State Bank of Viet Nam this week licensed 10 banks and gold trading companies to import a total of four tonnes of gold, expected to arrive in the country today.
The Sai Gon Jewelry Co, the country's largest gold trader, and the Phu Nhuan Jewellery Co were allowed to import 700 and 500 kilos of the mineral, respectively.
This is the third time the central bank has authorised gold trading companies to import gold since last month to help bring down soaring domestic prices.
On the domestic market, the SJC quoted gold at VND46.8/46.95 million per tael (1.2 ounces) yesterday while Bao Tin Minh Chau listed at VND46.8/47.02 million, nearly VND2 million higher than the world price. — VNS
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