Proposal to reduce gold export tax to 0%

The basic content of this amendment to the Decree is to reduce the export tax rate of gold jewelry and fine art products under 4 codes (7113.19.10, 7113.19.90, 7114.19.00, 7115.90.10) from 1% to 0%. According to statistics from the Customs Department, the total export turnover of this item in all 4 codes in 2024 is 332.2 million USD, down 4.95% compared to 2023 (349.5 million USD). Of which, jewelry increased from 211 million USD in 2023 to 317.9 million USD in 2024; jewelry parts increased from 9.6 million USD to 11.9 million USD; Other articles of gold or silver increased from $442,000 to $502,000. Only industrial goods and parts thereof decreased from $128.4 million to $1.8 million, a decrease of 98.6%.

Proposal to reduce gold jewelry export tax to 0%. PHOTO: NGOC THACH

In order to implement the direction of the General Secretary in Notice No. 211-TB/VPTW and the Government Standing Committee in Notice No. 300/TB-VPCP, and at the same time to support cost reduction for businesses trading and exporting gold jewelry and fine arts, increase the competitiveness of Vietnamese gold jewelry and fine arts products in the international market in the context of difficulties due to limited input gold sources and high prices, thereby contributing to promoting the conversion of stored gold into value-added products, the Ministry of Finance submitted to the Government an adjustment to reduce the export tax rate of gold jewelry and fine arts products under 4 codes from 1% to 0%. Implementing this plan, the state budget revenue is expected to decrease by about 3.3 million USD/year (about 79 billion VND/year).

The Ministry of Finance also stated that the gold industry in general and gold jewelry and handicrafts in particular have recently experienced many fluctuations in prices and supply and demand in both the domestic and international markets. The world gold price in the first quarter of 2025 increased by about 38 - 39% compared to the same period in 2024. The average domestic gold price increased by about 37.4% in the first 6 months of the year. The fluctuations in world and domestic gold prices have affected global gold consumption, especially for gold jewelry and handicrafts. According to a report by the World Gold Council (WGC), gold consumption demand in Vietnam in 2024 will reach a total of 55.3 tons, a slight decrease compared to 2023 (55.5 tons), of which the demand for gold jewelry and handicrafts will reach 13.22 tons (down 13% compared to the same period in 2023 - the largest decrease in the ASEAN region).

Currently, no enterprise has been licensed to import raw gold to produce gold jewelry and fine arts, but must balance the source of raw gold from the domestic market, which is in a state of scarcity and has a high price difference compared to the world gold price. From mid-April 2025, the difference between domestic and world gold prices began to increase sharply, peaking in mid-May 2025 when the price of SJC gold bars was 19 million VND/tael higher than the converted world gold price, while the difference for gold rings was close to 14 million VND/tael. This reduces the competitiveness of Vietnam's exported gold jewelry and fine arts products in the international market.

"Researching to reduce export tax rates on gold jewelry and fine arts products is necessary to support businesses in reducing costs and increasing the competitiveness of Vietnamese gold jewelry and fine arts products in the international market in the context of difficulties due to limited input gold sources and high prices, thereby contributing to promoting the transformation of stored gold into value-added products," said the Ministry of Finance./.

According to Thanh Nien Newspaper

Source: https://thanhnien.vn/kien-nghi-thue-xuat-khau-vang-xuong-0-185250826000120627.htm

Source: https://baolongan.vn/kien-nghi-thue-xuat-khau-vang-xuong-0--a201364.html