Vietnam establishes 10 pct tax on gold exports

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Vietnam's Finance Ministry said it will impose a 10 percent tax on gold exports starting next year.

The tariff will be levied on gold of less than 99.99 percent purity and on jewelry made from more than 99 percent of pure gold.

Vietnam does not currently impose any tax on gold exports.

The Finance Ministry had initially proposed a 20 percent tax amid a frenzy that drove the price of gold to an all-time high early last month.

Officials at the ministry said the new tariff will prevent local businesses from exporting a large amount of gold and affecting local gold supply.

Nguyen Thi Cuc, deputy director of Ho Chi Minh City-based gold and jewelry firm PNJ, said the decision to impose the 10 percent tax will not have huge impacts on local businesses.

Most gold jewelry is only 20-25 percent pure while gold bars for exports are mainly more than 99.99 percent pure.

Sacombank jewelry director Nguyen Ngoc Que Chi said the tax will keep the domestic gold supply from leaving the country.

This will help make the market more stable, she added.

Vietnam imported 339.86 tons of gold from 1998 to September this year and exported 268.86 tons during the same period, Central Bank Governor Nguyen Van Giau said last month.

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