Government mulls tax on gold bars

The government said Tuesday that it would announce later the minimum volume of gold subject to the tax and when it would take effect.

"This regulation is necessary to tighten management of gold trading activities, prevent speculation and channel financial resources into the economy," Minister of Finance Nguyen Van Thang said.

Gold bars seen at a Saigon Jewelry Company shop in HCMC. Photo by VnExpress/Quynh Tran

Reviewing the proposal, chairman of the National Assembly’s economic and financial committee, Phan Van Mai, said many members of his committee have called for caution on the tax proposal, saying people consider gold a long-term investment and do not speculate.

There has never been a tax on gold so far. Analysts have said the tax will help create a level playing field between the precious metal and other asset classes such as securities and real estate and also reduce reliance on gold.

On Oct. 10 the government relinquished its monopoly on gold bar production and has even thrown it open to the private sector.

It is also preparing to setup a gold exchange to improve transparency in what is admittedly an opaque market.

Saigon Jewelry Company bullion was sold at VND148.2 million (US$5,630.06) per tael of 37.5 grams Tuesday morning, up 76% for the year.