Vietnam suggests imposing a tax on gold trading to control market speculation as prices remain unpredictable
Vietnam Introduces Personal Income Tax on Gold Trading to Regulate Market
In a bid to curb speculative activity and improve market transparency, the Vietnamese government has proposed the introduction of a personal income tax on gold trading. This move is part of a broader initiative aimed at regulating the gold market more effectively and maintaining the stability of the domestic market.
Previously, Vietnam did not impose taxes on profits from gold trading. However, with gold prices surging 56% this year, compared to a 14% rise over the same period last year, the government has taken notice.
Prime Minister Pham Minh Chinh has ordered the State Bank of Vietnam (SBV) to tighten supervision and take decisive action against market manipulation, gold hoarding, and illegal trading practices. The government's actions are aimed at maintaining the stability of the domestic gold market.
Saigon Jewellery's gold bars were sold at a record high of over 135 million dong per tael, which is approximately 162,000 baht. This price was roughly 20 million dong (24,000 baht) above the global stock market today price, raising concerns about market manipulation and speculation.
To enforce measures against gold trading non-compliance, the government has directed the Ministry of Finance and the central bank to work alongside the Government Inspectorate, Ministry of Industry and Trade, Ministry of Public Security, and the SBV. Inspections on financial institutions and enterprises have been conducted by these bodies since 9 September, with the aim of ensuring compliance with regulations on gold trading, anti-money laundering invoice issuance, and other related rules.
Analysts suggest that introducing a gold tax could level the playing field across different asset classes and improve market fairness. By taxing gold profits, the government aims to increase household revenue and reduce speculation in the gold market.
The proposed tax and the subsequent actions are a significant step towards regulating the gold market in Vietnam. The government's commitment to transparency and fairness in the market is evident in its efforts to curb speculative activity and maintain gold price today market stability. As discussions and resolutions around this legislation continue, it remains to be seen how these changes will impact the gold market in Vietnam.
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