Vietnam proposes gold trading tax to curb speculation amid volatile prices
Vietnam plans a personal income tax on gold trading to boost transparency and curb speculation after domestic prices surged 56% this year.
The Vietnamese government has proposed introducing a personal income tax on gold trading to improve market transparency and curb speculative activity, following recent sharp fluctuations in domestic gold prices. So far this year, gold in Vietnam has surged 56%, compared with a 14% rise over the same period last year.
According to Kinh Te & Do Thi, one notable example of the volatility occurred when Saigon Jewellery’s gold bars were sold at a record high of over 135 million dong per tael (around 162,000 baht), roughly 20 million dong (24,000 baht) above the global market price.
Last week, Prime Minister Pham Minh Chinh ordered the State Bank of Vietnam (SBV) to tighten supervision and take decisive action against market manipulation, gold hoarding, and illegal trading practices that undermine the stability of the domestic gold market.
The government has directed the Ministry of Finance and the central bank to enforce these measures. Since 9 September, the Government Inspectorate, Ministry of Industry and Trade, Ministry of Finance, Ministry of Public Security, and the SBV have inspected financial institutions and enterprises to ensure compliance with regulations on gold trading, anti-money laundering invoice issuance, and other related rules.
Previously, Vietnam did not impose taxes on profits from gold trading. Analysts note that introducing a gold tax could level the playing field across different asset classes and improve market fairness.
