The Ministry of Finance has decided to raise the export duty on gold including jewelry from the current zero percent to 10 percent.
The duty will be imposed on material gold, ingot gold, powdered gold, and golden jewelry.
According to the Central Bank’s regulations, exportation of 99.99 percent gold requires export licenses, and exportation of jewelry made of gold at a purity of less than 99.99 percent doesn’t need licenses.
The ministry noted the higher duty is to prevent gold companies from dodging the regulations to export gold by exporting gold jewelry.
The increased tariff will come into effect on January 1, 2011.
The Ministry had initially considered a 20-percent tax on gold exports after domestic gold prices hit an all-time high of over VND38.2 million (US$1,910) per tael (1.2 ounces) on November 9, but reduced the tax to 10 percent in the issued regulation.
In another move to cool down the domestic gold market, the Central Bank has also decided to allow gold imports for the third time this year. Since that, gold prices have settled back to about VND36 million ($1,675) per tael.
