|
Official
reports said that Chinese authorities are considering
re-levy of VAT on gold after the tax was exempted for 14
years.
The Ministry of Finance (MOF), State Administration of
Taxation (SAT) and China Customs are deliberating imposing
VAT on gold, but the idea was opposed by certain departments
related with the country's gold industry.
It is learnt that so far relevant authorities have not yet
reached consensus on the gold VAT re-levy issue. The
departments have planned to re-levy VAT on gold after the
Beijing 2008 Olympic Games.
China's central bank, which is in charge of gold market, and
the National Development and Reform Commission (NDRC) in
charge of gold industry were against the plan. Hou Huimin,
vice president of China Gold Association (CGA), noted that,
to keep sound development of gold industry and market, VAT
on gold ought to be exempted continuously.
China has exempted VAT on gold since 1994, according to the
situation of the domestic gold market and the gold taxation
in western countries. The favorable taxation on gold was
prolonged in 2002.
The World Gold Council announced early this year China’s
position as the world’s second largest gold market and
consumer behind only to India.
China has overtaken the United States to become world’s
second largest market for gold jewellery as the sale of the
yellow metal in the country reached a record 302.2 tons.
China's gold jewellery sales recorded a 34 per cent jump, it
said.
The WGC opined 2007 as a year of great momentum for the
world gold market where China had played a significant role.
The US saw a 14 per cent year-on-year rise in demand for
gold, while the gold market in Italy and Britain became
subdued.
China posted a 20 per cent growth in gold jewellery sales in
the last quarter of 2007. Gold futures also made a strong
debut on the Shanghai futures exchange as the international
gold prices soared to a new high.
Source
: Commodity Online - Kochi, Kerala, India, dated
14/08/2008
|
