The Vietnam Gold Traders Association has proposed that the Ministry of Finance eliminate the export tax imposed on jewelry, which currently stands at 10 percent, saying that it will help domestic gold traders in the current economic slowdown.
According to the association, the demand for jewelry has been slow recently due to the economic slump, causing a negative impact on domestic gold jewelry exports, news website VnExpress reported January 26.
At the moment, Thailand has imposes no export tax on jewelry and Vietnam should follow the scheme to boost domestic shipments, it added.
The Ministry of Finance has applied a 10 percent export tax to jewelry that has more than 80 percent to under 99.9 percent gold content since August 2011. Previously, the tax was put only on jewelry containing more than 99 percent gold.
The association also said the tax reduction will help Vietnam's jewelry products compete on the international market.
It also argues that Vietnamese jewelry products at ratios of 83.3 percent and 91.6 percent gold are preferred by buyers in Turkey, China and Dubai, but Vietnamese products cannot compete with other countries' because of the taxes.
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