Group urges end to jewelry export tax

The Vietnam Gold Business Association has urged the State Bank of Vietnam to abolish the export tax on jewellery which is at 10 per cent now.

The Vietnam Gold Business Association (VGBA) has urged the State Bank of Vietnam to abolish the export tax on jewellery which is at 10 per cent now.

Staff of Phu Nhuan Jewelry Joint Stock Co shows products to customers.

It said since the ministry imposed the tax on gold with purity of 80 to 99 per cent in August 2011, exports of jewellery and gold artworks have plunged.

With the prolonged economic slump, domestic demand for gold jewellery is also very low.

Meanwhile, the Government has tightened regulations on bullion trading, leaving most gold companies in the lurch.

On the other hand, many countries in the neighbourhood have for years applied zero tax on export of gold jewellery and artworks to encourage domestic producers.

Thailand now exports gold products worth $3 billion a year.

An unnamed association official said Vietnam could be very competitive in producing golden jewellery and artworks for the export market.

Vietnamese 20K (83.33 per cent), 22k (91.66 per cent), and even 24k jewellery and other works are popular in countries like Turkey, Dubai, and China.

But the current 10 per cent tariff makes it difficult for Vietnamese producers to compete with rivals from countries that do not slap export taxes on these products.

The VGBA has urged the Ministry of Finance to continue its policy of not taxing exports of gold products with gold content of less than 80 per cent, and abolish the tax on export of products with higher gold content.

It has also called on the central bank to allow authorised producers of jewellery and gold artworks to import the precious metal.

Only banks and firms licensed to trade gold bullion are now allowed to import.