On August 2nd, Ministry of Finance has issued Circular 111 regulating export tax rate for gold. Accordingly, 10 per cent tax will levy on jewelry with more than 80% gold content instead of jewelry export with 99% gold content as present.
Specifically, all kinds of gold, including gold plated with platinum unwrought or in semi-manufactured forms, or in powder form with gold content of under 99,9% will subject to tax of 10%. As for other articles of gold, goldsmiths’ wares, jewelry, metal clad with gold, silver or precious metal, which have gold content of 80% or more will be levied tax rate of 80% instead of 0% as present.
The new regulation would stop wasting material gold which had made the macro-economy unstable. Some gold traders had reprocessed their jewelry products to have good content of less than 99 per cent in an attempt to avoid the tax.
Besides taxes, the MoF is also considering strengthening customs activities by verifying the quality of the jewelry gold for business with large and irregular export shipments, in addition to checking the receipts to prove the origin and source of goods.