Tax authorities call for making gold purchases cashless

By Phuong Dung June 18, 2024 | 07:25 pm PT

A customer looks at gold jewelry at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran

Gold purchases should only be paid through bank accounts to enable authorities to keep track of financial transaction and prevent money laundering, a tax official has said.

It is easy to buy gold bullion with cash though the government is seeking to popularize non-cash payments, deputy head of the General Department of Taxation, Dang Ngoc Minh, said at a press briefing Tuesday.

The State Bank of Vietnam’s HCMC branch had made a similar proposal in May to ensure transparency in the gold market.

Some analysts pointed out that while non-cash transactions should be encouraged, people who are not tech-savvy might have trouble with them.

There are 12,500 gold and jewelry businesses in the country, and many of their buyers pay cash and do not even demand an invoice, which makes it difficult for tax authorities to monitor these transactions.

Vietnam is one of the biggest gold markets in Southeast Asia with 55.5 tons changing hands in 2023, according to the World Gold Council.

The precious metal gained 22% in the first five months before falling back earlier this month after the central bank sold it at below market prices to narrow the gap between domestic and global rates.

It has been steady at VND76.98 million ($3,024.28) per tael of 37.5 grams for almost two weeks.