As per a newly enacted legislation on Wednesday, sales of gold bars will now be subjected to a 0.1% tax, as declared by the National Assembly. However, the responsibility of determining the tax threshold and the schedule of implementation has been delegated to the government.
The government has previously expressed its stance that taxing gold is a crucial measure in order to limit speculation and facilitate the redirection of more resources towards the economy. The establishment of a taxable threshold is aimed at excluding those individuals who engage in the buying and selling of gold as a form of investment rather than for speculation.
Investment in gold is a common practice in Vietnam, and the act of selling gold has never been subjected to taxation in the past.
Industry analysts have voiced their opinions that the taxation of gold could potentially establish a more balanced environment for all asset classes. The domestic gold market has been a source of major concern for lawmakers due to its volatility, with gold prices witnessing a hike of over 80% since the beginning of the current year.
At the time of publishing, the price of gold was hovering around VND153.7 million (equivalent to US$5,829.60) for a tael of 37.5 grams, marking 15% higher than the global rates.
Why has the government decided to tax gold sales?
The government views this taxation as a necessary step to curb speculation and channel more resources into the economy.
What does the establishment of a “taxable threshold” imply?
The taxable threshold is intended to exempt individuals who buy and sell gold as an investment, not for speculation.
How does this new tax regulation impact the domestic gold market?
The new tax regulation could potentially create a more balanced field for all asset classes and help control the volatility in the domestic gold market.
