The content is stated in the draft Decree on preferential import and export tariffs, list of goods and absolute tax rates, mixed tax rates, and out-of-quota imports.

Accordingly, the Ministry of Finance proposed to reduce the export tax rate on gold jewelry and fine arts from 1% to 0%.

The drafting agency believes that this tax reduction study is necessary to support businesses in reducing costs and increasing competitiveness. This also contributes to transforming stored gold into value-added products in the context of limited input gold resources and high prices.

The new tax rate (0%) is within the tax rate range of gold jewelry and fine art groups (from 0-10%) and is consistent with the principles of promulgating tax schedules and tax rates.

People buy gold, SJC gold, and jewelry at a gold shop in Binh Thanh district. Photo: Quynh Tran

This proposal comes in the context of the gold industry, including jewelry and fine art production, facing many fluctuations in prices and supply and demand. According to the World Gold Council (WGC), the average world gold price in the first quarter increased by about 38-39% compared to the same period last year.

According to domestic statistics, since the beginning of the year, the gold price index has continuously increased sharply compared to the previous month and the same period last year. On average, this index increased by 43.62% in the second quarter and 37.4% in the first half of the year. Jewelry prices also fluctuated in the same direction as domestic gold prices.

Price fluctuations affect global gold consumption, especially for jewelry and fine art products. In Vietnam, gold consumption demand in 2024 will reach 55.3 tons, down slightly from 2023 (55.5 tons). Of which, demand for gold jewelry and fine art will be 13.22 tons, down 13% - the largest drop in the ASEAN region.

In fact, to support businesses in this field, the operator is applying a preferential import tax rate for raw gold (unprocessed gold) at 0%. However, according to the State Bank, since 2012, no business has been licensed to import this gold to produce gold jewelry and fine arts. They have to balance the source of raw gold from the domestic market - which is in a state of scarcity, with prices higher than the world.

On August 26, businesses announced that the price of plain gold rings was 119.6-122.6, the highest ever. The difference between domestic and international prices (after conversion) was up to 20 million VND per tael. This reduced the competitiveness of Vietnam's gold jewelry and handicraft products exported in the international market, according to the Ministry of Finance.

It is expected that the budget will reduce revenue by about 3.3 million USD, equivalent to 79 billion VND when this tax is reduced to 0%.

According to VnExpress

Source: https://baocamau.vn/de-xuat-ha-thue-xuat-khau-vang-trang-suc-ve-0--a121820.html