HANOI: Vietnam’s Ministry of Finance recently issued Circular No. 36/2015/TT-BTC, which placed a two percent tax on the export of certain gold jewelry and other gold products with effect from May 7, 2015.
Vietnam’s export tax on gold jewelry and other gold products was previously cut to zero with effect from January 1, 2014. The previous tariff rate on exports with a minimum 80 percent gold content, in force since 2011, was 10 percent.
The Government abolished the export tax on gold jewelry last year as it was said to have harmed the Vietnamese gold sector during a period of low demand. Gold producers have recently asked the Ministry not to reintroduce the tax, as they were concerned that a new high-rate duty would again affect local gold businesses.
In the Circular, the Ministry has imposed the new two percent tax only on those exports of gold products that are more than 95 percent pure. Zero percent duty is retained on gold jewelry that is 95 percent pure or less.
The new duty is unlikely to affect Vietnamese businesses, as their gold jewelry exports are generally 75 percent pure or less.Vietnam’s jewelry exports have also been steadily decreasing in recent years, due to foreign competition.
