Tran Kim Yen, a part-time member of the Culture and Social Affairs Committee, presented this information during a hall discussion on the draft amended Personal Income Tax Law on the afternoon of 19/11.

In the draft, the government proposes adding a regulation to tax income from gold bullion transfers at 0.1% of the transaction value per instance. Based on market conditions, the government will stipulate the application time, the threshold value of gold subject to tax, and adjust the tax rate to suit actual circumstances.

Tran Kim Yen, a part-time member of the Culture and Social Affairs Committee, speaking at the session on the afternoon of 19/11. Photo: National Assembly Media

According to Yen, most people view gold as an asset for accumulation and savings in their daily lives. "They might buy small amounts to save for potential emergencies," she explained.

Yen urged for measures to manage and enhance transparency in the gold market. She assessed that the proposed 0.1% tax rate in the draft law is not strong enough to deter gold speculation, as it is negligible compared to the profits these individuals could earn.

Sharing a similar view, Pham Van Hoa (Dong Thap Lawyers' Association) argued that gold bullion transactions must be taxed to prevent speculation, which destabilizes the market. However, he also noted that the 0.1% tax rate is not a sufficient deterrent and needs reconsideration.

Additionally, he recommended against taxing individuals or families who buy gold for savings, such as for illness or epidemics. "These people do not use gold for business purposes," Hoa stated.

Trinh Xuan An, a full-time member of the National Defense and Security Committee, pointed out that no other country has applied personal income tax on gold bullion transfers. "This proposal is new, but I believe it is reasonable given the unique characteristics of Vietnam's gold market, and it will not affect people's savings or lead to concerns about double taxation," he said.

Regarding some delegates' concerns about the difficulty in distinguishing between those who buy gold for speculation and those who save, An argued that staying up late and registering to buy gold from early morning cannot be considered saving. "If they cannot buy gold bullion, people buy pressed gold rings. This situation arises due to speculation," the full-time member of the National Defense and Security Committee said.

Trinh Xuan An, a full-time member of the National Defense and Security Committee, speaking at the session on the afternoon of 19/11. Photo: National Assembly Media

An also agreed with the draft's direction of entrusting the government to specify the gold bullion value threshold subject to tax and the policy's implementation time. He expressed hope that the government would quickly issue a decree to collect tax on gold bullion transfers as soon as the amended law takes effect.

Explaining afterwards, Finance Minister Nguyen Van Thang affirmed there would be no double taxation by applying a 0.1% levy on the value of each gold bullion transfer. He stated this is one of many solutions to stabilize the gold market.

In practice, tax is an effective tool to regulate the market but has never been applied to gold in Vietnam. Analysts suggest that taxing the precious metal could generate state revenue and create fairness with other investment channels like securities and real estate. This solution also helps combat the "dollarization" of the economy, as buyers would have to calculate holding periods and anticipate profits or losses based on fluctuations in world and domestic prices, along with the tax payable.

Domestic gold market volatility is a key concern for many delegates at National Assembly sessions since the 10th session began. Gold prices have recently surged, with the difference between domestic and world gold prices sometimes exceeding 20 million dong per tael.

In today's trading session, SJC gold bullion was listed at 148.7 - 150.7 million dong per tael, an increase of 1.4 million dong compared to yesterday. Doji and PNJ also quoted similar prices for the precious metal as SJC. Converted at the Vietcombank exchange rate, the world price is equivalent to over 129.4 million dong, a difference of 21 million dong compared to the domestic price.

The National Assembly is expected to vote on the amended Personal Income Tax Law on the morning of 10/12.

Anh Tu