Gold price list July 5: SJC continues to move sideways. Why can a transaction tax cause gold prices to increase?

Summary With a prolonged sideways movement, the gold bar market is about to end the 5th week of stable gold sales with 4 consecutive weeks of sideways movement. The idea of taxing gold transactions is supported by many experts, but there are still concerns that it will cause gold prices to increase. details Updated at 10:00 a.m. on July 5, SJC Ho Chi Minh, Doji Hanoi, Doji Ho Chi Minh continue to fix buying - selling transactions at 74.98 - 76.98 million VND/tael, the buying - selling difference is 2 million VND. Bao Tin Minh Chau, Phu Quy kept the buying - selling price unchanged at 75.50 - 76.98 million VND/tael, the difference between buying and selling was at 1.48 million VND. The selling price of gold bars at SJC and Big4 banks announced this morning continues to remain unchanged at 76.98 million VND/tael. As of today, SJC gold bars have moved sideways for 29 consecutive days. At the end of this week, if there is no price adjustment, gold bars will record 4 consecutive weeks of sideways movement. The stability of gold bars lasts when adjustments in world gold prices always keep the gap with gold bars below the 5 million VND mark. [caption id="" align="aligncenter" width="1024"] SJC gold bar price developments in the past 1 month[/caption] Concerns that a transaction tax could push up gold prices Faced with the pressure of speculation and gold hoarding, causing cash flow to not flow into production and business, financial expert - Dr. Nguyen Tri Hieu believes that taxing gold transactions is necessary because making profits from gold transactions is like other types of investment and business. Mr. Hieu proposed two tax options: based on revenue or profit from gold trading. For profitable gold trading activities, determined through invoices and documents, people will pay taxes based on profits. In the case of people buying gold a long time ago and at the time of purchase there was no invoice; or in the case of a gift, the tax rate can be determined on revenue (ie the total amount received from selling gold). The tax rate applied to profits will be much higher than the tax rate on revenue. This tax applies to all types of gold, regardless of gold bars, rings or jewelry. The idea of taxing gold transactions is supported by many experts, however many people worry that gold prices will increase, contrary to the State Bank's efforts to narrow the gap with world gold during this period. According to Dr. Nguyen Tri Hieu, taxation can cause gold prices to increase. “Gold traders will have to pay taxes and they will increase their profit margin and the price of gold will increase accordingly. This may not be consistent with the Government's policy of bringing gold prices closer to the world level. I think that the Government pulling down gold prices at the present time is only a temporary measure. In the future, we should let market supply and demand determine the price of gold." There are also opinions that imposing taxes on a type of asset every time its price increases sharply is not an effective measure. This can even have the opposite effect when speculative cash flows can flow to other markets that are more difficult to control, such as cryptocurrency. During the press conference held on June 18, responding to reporters about taxing gold transactions to limit people's gold hoarding, Deputy Minister of Finance Nguyen Duc Chi noted this opinion and said that the Ministry of Finance will conduct a detailed and comprehensive study and assessment because the addition of taxes needs to consider factors, not just the aspect of increased gold transactions in recent times.

Gold price list July 5: SJC continues to move sideways. Why can a transaction tax cause gold prices to increase?

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