Nhan Dan – From May 26, the gold import tax will be increased to 1% a tael from the current 0.5%, according to a new decision dated May 19 by the Ministry of Finance.

With the new tariff, gold importers will have to pay around VND 18,000 for a tael of gold they import.

Gold traders said that theoretically the increase of gold import tax would lead to an increase in the domestic gold prices.

According to the Gold Association, the increase of the gold import tariff is made after the Vietnam Association of Finance Investors (VAFI) proposed in May an increase in the import tax on gold to 10%-20% after the domestic gold market has experienced great changes in recent time.

VAFI argued that the increase of gold import tax will also help reduce trade deficit and increase State budget revenue.