There are many methods of taxing gold transactions, but it should be based on profits. Hanoi Moi Newspaper reporter had a discussion with economic expert Nguyen Tri Hieu about this issue.
- The State Bank has just announced the conclusion of the inspection of a number of gold trading enterprises, in which 2 banks, TPBank and Eximbank, and 4 enterprises, SJC, PNJ, Bao Tin Minh Chau, Doji, all violated. What is your opinion on this issue?
- According to the conclusion, large enterprises and banks trading gold have many violations, including violations of online gold trading on unlicensed applications and websites; violations of receiving gold for safekeeping without sealing or recording the series; incomplete reports of suspicious transactions; employees facilitating "fake" gold bar transactions; violations of invoices, accounting and tax documents; violations of the gold bar buying and selling reporting regime... The conclusion reflects the reality that the gold market in Vietnam still has loopholes. I highly appreciate the announcement of the inspection conclusion because it will help people and economic sectors know the violations of gold traders. If they do not know, they will unwittingly assist in those violations.
- So, in your opinion, what solutions need to be implemented to prevent violations by banks and businesses in gold trading activities?
- Violations must be strictly handled to deter and prevent re-offending. Laws as well as decrees and circulars must clearly and transparently define which gold trading activities are permitted and which are not, especially online gold sales. Along with that, it is necessary to standardize processes and make prices of gold traders transparent; strengthen internal process inspections and risk control.
The domestic and international gold market is in a period of strong fluctuations. In this context, in addition to legal regulations, internal regulations need to be checked. All gold traders need to announce their internal procedures to the management agency, from which the competent agency will review whether the internal procedures are reasonable or not.
Along with that, it is necessary to quickly promote the construction of a gold trading floor to create a transparent and public trading channel. People can participate in buying and selling gold through market members who are gold trading enterprises. To stabilize the gold market, there must be a supply source. If the above conditions exist but the supply source does not meet the demand, there will be a phenomenon of an "underground" market or a "black market".
Therefore, along with the above tools, Decree No. 24/2012/ND-CP on gold trading management needs to be amended, in which the first step is to remove the national gold brand SJC to create equality among gold brands, then allow gold traders to import raw gold for production and bring it to the market under the management of the State Bank to stabilize supply and demand, with the above tools, the market will be stable.
- Working with the Central Policy and Strategy Committee recently, General Secretary To Lam suggested that it is necessary to consider a reasonable tax on gold transactions to increase transparency, limit speculation and support management work. What is your opinion?
- I strongly agree with this proposal, because many countries in the world implement gold transaction tax. Besides, in principle, all economic activities that generate income and profit need to be taxed.
In Vietnam today, most income-generating activities such as investment by individuals, organizations and even income from labor are subject to income tax. For real estate, taxable income is the income received from the transfer of real estate, the tax rate is 2% of the transfer price. Or all cases of securities transfer must deduct personal income tax at a tax rate of 0.1% of the transfer price. Many other activities are also subject to personal income tax such as income from wages and salaries, income from winning prizes, income from royalties, etc.
- In your opinion, if we tax gold transactions, how should we tax them?
- Tax should be imposed on profits instead of on value at the time of sale. Taxing on transaction value is not good because people will be "taxed on tax". People use their after-tax income to buy gold and this transaction is taxed, they will be taxed twice.
When people sell gold at a profit, the difference between the selling price and the buying price is taxed, which would be fairer. Moreover, from the perspective of considering tax as a tool to limit gold speculation, taxing on profits is reasonable. However, it should be noted that taxing on the difference between buying/selling (profit) will not be easy to implement. The reason is that it is necessary to store and declare data on people's prices at the time of purchase. The tax rate is calculated progressively as in the personal income tax table.
Taxing gold not only increases budget revenue but also reduces profits in gold trading at times when gold prices are high, an effective method to combat gold speculation. Taxation should be combined with strict monitoring measures.
Thank you very much!
Source: https://hanoimoi.vn/nen-danh-thue-giao-dich-vang-nhu-the-nao-705519.html
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