HCM CITY (VNS)— The Viet Nam Association of Financial Investors has called for a 10 per cent value added tax on gold bullion trading to prevent the ‘goldisation' of the economy, which refers to people's propensity to use gold instead of money.
In a report in the Viet Nam Financial Times on Monday the VAFI said the recent gold bullion auctions by the central bank were only a temporary solution to ensure supply for credit institutions and reduce the gap between global and domestic gold prices, and did not help fight "goldisation."
Most of the measures used by the State Bank of Viet Nam to manage the gold market were not used anywhere else in the world, it claimed.
They did not help check the "goldisation" but instead caused gold worth $22 billion to be kept idly by individuals and affected policies related to interest rates and foreign exchange, it charged.
No country in the world waived tax on gold trading, it pointed out.
The association also suggested that the central bank should gradually lower interest rates on foreign currency deposits to zero per cent and on foreign currency loans to 3 per cent.
This would enable the dong to appreciate, causing interest rates on both loans and deposits in dong to further drop.
The plunging interest rates would help the securities and property markets recover and enable businesses to get access to cheap funds and expand, it said. — VNS