Proposal to tax gold bars: Need to clarify to avoid affecting hoarders

(HTV) - At the discussion session on the Law on Personal Income Tax, many National Assembly deputies suggested carefully considering the application of tax on gold bar transfers, in order to both ensure market transparency and avoid affecting people who hoard gold as a traditional form of savings.

Concerns about the 0.1% tax rate and the risk of affecting people's savings

At the discussion session on the Law on Personal Income Tax, many National Assembly delegates suggested carefully considering the application of tax on the transfer of gold bars.

The inclusion of gold bars into the transfer tax at a rate of 0.1% has received great attention from delegates. The goal stated in the draft is to limit speculation, reduce market fluctuations and increase transaction transparency. However, many opinions say that this tax rate is too low to regulate speculative behavior, while it risks affecting the group of people who buy gold just to accumulate or prevent risks in life.

According to the analysis of some delegates, most of the people's gold transactions are for savings purposes after they have paid personal income tax, so if they continue to collect tax when selling gold, it may create a feeling of double taxation. In addition, the distinction between the purposes of "speculation" and "hoarding" also needs to be clearly defined to ensure feasibility when implementing.

The inclusion of gold bars into the transfer tax at a rate of 0.1% received great attention from delegates.

Expanding tax incentives to encourage long-term saving and innovation

In addition to the issue of gold bars, many delegates appreciated the draft law's addition of deductions, including expenses for health care, education, insurance or voluntary retirement. However, the scope of incentives is currently narrow, only supporting basic social security. Some proposed expanding deductions such as contributions to innovative enterprises, start-ups or financial products allowed to circulate to promote the development of the private economy .

Opinions also emphasized that the addition of incentives must be accompanied by a strict control mechanism and appropriate deduction limits must be designed to avoid the risk of policy abuse.

Opinions also emphasized that the addition of incentives must be accompanied by a strict control mechanism and appropriate deduction limits must be designed to avoid the risk of policy abuse.

The Government will consider the timing of application to ensure market stability.

In response to delegates’ opinions, the Ministry of Finance said that the tax on gold bars has been carefully studied, focusing on the goal of regulating speculative behavior and reducing pressure on the gold and foreign exchange markets. This policy is affirmed not to be “tax on tax” but is part of the overall solutions to manage the gold market.

The Government will consider the timing of application to ensure market stability.

The Government will continue to assess the appropriate implementation time, issue taxable value thresholds as well as flexible adjustment mechanisms according to market developments, and report to the National Assembly before implementing guiding documents.

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Source: https://htv.com.vn/de-xuat-danh-thue-vang-mieng-can-lam-ro-de-tranh-anh-huong-nguoi-tich-tru-222251120141202795.htm