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| Buyers of gold and gold jewelry will pay more for their products if VAFI's suggestion is approved. — Photo Tigiavang |
HA NOI (BizHub)— The Viet Nam Association of Financial Investors (VAFI) called for a special consumption tax on gold, suggesting a rate of 20 per cent for gold and gold jewelry purchasing.
The association said gold and gold jewelry trading should be added to the list of products on which consumption tax is imposed, which includes beverages, beer, cars and automobiles, as gold and gold jewelry are also luxury goods that need to be under control.
The tax would only be applied to the buying side. People were encouraged to sell their gold to the State Bank of Viet Nam with no tax.
VAFI said this was the only way to prevent the "goldisation" of the economy, which refers to people's propensity to use gold instead of money. VAFI stated that the State Bank of Viet Nam's gold auctions could not solve the problem but would only benefit a few gold trading companies while ordinary buyers suffered losses.
VAFI predicted its solution would save billions, bringing another US$30 billion to make the $60 billion forex reserves and improving the Vietnamese economy.— VNS