This proposal is outlined in the draft decree on preferential import-export tariffs, the list of goods, and absolute tax rates, mixed taxes, and out-of-quota imports.
The Ministry of Finance proposes reducing the export tax rate on gold jewelry and fine arts from 1% to 0%.
The drafters believe this tax reduction is necessary to help businesses reduce costs and increase competitiveness. This will also contribute to transforming stored gold into value-added products, given the limited supply and high price of raw gold.
The new 0% tax rate falls within the tariff range for gold jewelry and fine arts (0-10%) and aligns with the principles of tariff and tax rate issuance.
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People buying gold, SJC gold, and jewelry at a gold shop in Binh Thanh district. Photo: Quynh Tran |
This proposal comes as the gold sector, including jewelry and fine arts production, faces fluctuations in price and supply and demand. According to the World Gold Council (WGC), the average world gold price in Quarter I increased by about 38-39% compared to the same period last year.
According to domestic statistics, since the beginning of the year, the gold price index compared to the previous month and the same period last year has continuously increased sharply. On average, this index increased by 43.62% in Quarter II and 37.4% in the first half of the year. Jewelry prices have also fluctuated in line with domestic gold prices.
Price fluctuations have affected global gold consumption, especially for jewelry and fine arts. In Vietnam, gold demand in 2024 reached 55.3 tons, slightly down from 2023 (55.5 tons). Of this, the demand for gold jewelry and fine arts was 13.22 tons, a 13% decrease – the largest drop in the ASEAN region.
To support businesses in this sector, the government is applying a preferential import tax rate of 0% on raw gold (unprocessed gold). However, according to the State Bank of Vietnam, since 2012, no businesses have been licensed to import this gold for the production of gold jewelry and fine arts. They have to balance their raw gold sources from the domestic market, which is currently scarce and has a higher price than the world market.
On 26/8, the price of plain gold rings was announced by businesses at 119.6-122.6 taels, the highest ever. The difference between domestic and international prices (after conversion) is up to 20 million dong per tael. This reduces the competitiveness of Vietnamese gold jewelry and fine arts exports in the international market, according to the Ministry of Finance.
The budget is expected to decrease by about 3.3 million USD, equivalent to 79 billion dong, when this tax is reduced to 0%.
Phuong Dung
