The Vietnam Ministry of Finance has settled to scrap export obligation on gold jewelry from January 1, 2014. According to the notification issued by the Ministry, trade goods obligation on gold jewelry and fine works will be eliminated. On the other hand, the trade goods tax on material gold will be set at 2%.
As per the current rates determined in 2011, the country levies a levy of 10% for trade goods of material gold of less than 99.99 % purity. The trade goods of gold jewelry overhead 80% purity furthermore attracts levy of 10%. The extremely high obligation structure is said to have damaged Vietnam’s gold industry. The abolition of obligation is directed at boosting enterprises to trade goods jewelry. The Ministry documented that several neighboring nations have reported robust development in gold jewelry exports after eliminating export obligations.
The Vietnam Gold Traders Association has welcomed the move, saying that the conclusion would open doorways of gold jewelry exports to numerous destinations especially Turkey, Dubai and China where Vietnamese jewelry are in gigantic demand.
According to data, the country has nearly 12,000 gold selling businesses, but majority of them are small-scale businesses which trade in secondary quantities of gold jewelry. From last year, trade and trade goods of gold by the country is taken care by the State Bank of Vietnam. The investment Ministry notification states that 2% trade goods levy is to be levied only when the State Bank of Vietnam permits businesses to trade or trade goods material gold.