As per regulations in Vietnam, Vietnam authorities gold with purity of 99.99 per cent and gold jewelry with a purity of 80 per cent would be subject to a 10-per-cent export duty.
As per regulations in Vietnam, Vietnam authorities gold with purity of 99.99 per cent and gold jewelry with a purity of 80 per cent would be subject to a 10-per-cent export duty.
Authorities claimed the restrictions helped reduce gold exports and control supply but forced gold dealers in the country to worm their way around the tax provision by lowering the purity of gold for export or to fashion it into rudimentary jewelry.
Analysts said the tax rate is high enough to erase any profit of gold dealers in exporting gold, further compounding the problems for dealers facing domestic prices higher than prices that can be fetched internationally.
They added that restrictions on exports have had other unintended consequences. Real, quality jewelry may become less competitive because of the addition of the high export tax. The restrictions also encourage cross-border smuggling, a challenge and a significant cost to law enforcement and customs authorities.
Meanwhile, even though the current import tax for gold is set at 0 per cent, gold dealers have faced difficulties in importing the metal.
The State Bank only grants quotas on a case-by-case basis, creating additional motivation for smuggling, as well as undercutting foreign exchange managment efforts since smugglers pay out US dollars for gold they bring into the country.
Most dealers demanded that controls on import and export of gold should be lifted and sanctions should be imposed on gold price speculation and other manipulating acts.
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