The Vietnam Gold Traders Urge Higher Import Duty

The Viet Nam Gold Traders Association has recommended a clutch of measures to the Government which it says will further stabilise the gold market and increase tax revenues.

In an open letter to Prime Minister Nguyen Tan Dung, the association said the Government should reduce the gold export tax and increase import tariffs.

Currently imports are tax-free while the export tariff is 10 per cent.

The letter said the current tax regime was aimed at encouraging imports and limiting exports to ensure supply in a market where the price per gramme was VND100,000 lower than global prices.

But the Government should raise import taxes to increase tax revenues, it said. Do Minh Phu, deputy chair of the association, suggested a tax rate of 0.5 per cent.

Besides, the 10 per cent rate on gold exports was too high and discouraged enterprises from exporting – the country's gold exports were worth US$2 billion in both 2009 and 2010 – he said.

On the other hand, the high export tax encouraged illegal exports, and the Government should reduce it to the earlier 0.5 per cent level, he added.

The association also called for a national gold exchange commission made up of commercial banks and major gold trading companies and monitored by the State Bank of Viet Nam and related agencies.

All gold transactions should be routed through it, it said.

The new entity would help set gold rates in the domestic market, it said.

The association also suggested that the Government allows gold trading through overseas accounts to continue.