|
Domestic gold suppliers startled by new import tariff
Local gold suppliers were taken by surprise when the government increased the tax rate on imported gold from 0.5 percent to 1 percent this week.
The decision was signed Tuesday to come into effect this coming Tuesday, but was not officially announced to gold suppliers until two days ago, Friday.
A representative from Vietnam’s state-owned Export-Import Commercial Joint-Stock Bank (Eximbank) said many domestic gold suppliers were not prepared for the increase and would lose big if their imports arrived on or after May 20.
Though Eximbank has not reached its imported gold limit yet, the bank said it was not sure whether or not it would import more of the precious metal at this time.
The world gold price approached US$902 per ounce Saturday morning as oil prices soared alongside the weakening American dollar.
At Saigon Jewelry Holding Company, a tael (1.2 ounce) of gold was sold at VND17.77 million, an increase of VND380,000 per tael, putting local gold lower than world gold.
The US dollar has lost nearly 6 percent against the Euro and 6.7 percent against the Japanese yen since the beginning of the year.
Other factors driving up the world gold price include the slowing of the US economy and the threat posed to South Africa’s gold supply by an electricity shortage there, Eximbank says.
Nguyen Thi Cuc, deputy director of Phu Nhuan Jewelry Joint Stock Company, said the company’s current gold price does not take into account the increased tax rate.
Cuc said she wasn’t worried about the tariff as much as she was worried that the government would further restrict the amount of gold that could be imported.
Many people are buying gold as they consider it a better way to preserve their assets amid high inflation, she said.
The new policy could drive the domestic gold price higher than the world price.
“That could lead to gold being smuggled into the country and American dollars being drawn out,” Cuc explained.
Thanhnien
|
