Ministry to consider possible tax on gold transactions

People previously lining up to buy gold at an Agribank branch in Hanoi. (Source: Laodong)

As gold prices surged to a historic high before settling down last week, the press, economists, as well as members of the public, have voiced their concerns over the lack of a gold tax for transactions of the precious metal. Many asked why when there are taxes on other assets such as real estate and securities, there are none for gold transactions.

Chi said in considering the profound impact a gold tax could produce on society as a whole, the ministry must conduct a thorough study before sending a proposal on the matter to the government.

Economists have long maintained before granting the right to import gold into the market, with the State Bank of Vietnam (SBV) being the only entity allowed to right now, taxing gold transactions is necessary to keep gold prices in control.

Prof. Nguyen Thi Mui, a member of the National Financial, Monetary Policy Advisory Council advised the central bank and the ministry to start building a tax policy for gold transactions.

She said a gold tax could significantly reduce demand for the precious metal among certain investor groups, especially those who speculate and hoard. A gold tax could also serve as the foundation for a fairer and more sustainable business environment, given that traders of real estate and securities are also subject to personal income tax.

Dang Ngoc Minh, Deputy Director-General of the General Department of Taxation, said gold trading is subject to the state's management policy, just like other economic activities.

In accordance with the Prime Minister's directives, measures have been taken to monitor the trading of the precious metal, including the use of electronic invoices. The Ministry of Finance (MoF) has recently proposed all gold transactions should be conducted via non-cash payment methods, Minh added.

According to the general department, nearly 55,000 businesses country-wide have started issuing electronic invoices, including 5,835 gold and silver traders, who have issued over 1.06 million of such invoices to date.

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