China is scrapping a long-standing gold tax incentive in a potential setback for consumers in one of the world’s top bullion markets.
Starting on Nov. 1, Beijing will no longer allow retailers to offset a value-added tax when selling gold they bought from the Shanghai Gold Exchange, whether sold directly or after processing, according a new legislation from the Ministry of Finance.
The rule covers both investment products – such as high-purity gold bars and ingots, as well as coins approved by the People’s Bank of China – and non-investment uses including jewelry and industrial materials.
The move should bolster government revenue at a time when a sluggish property market and weak economic growth have strained public coffers. But the changes will also likely increase the cost of buying gold for Chinese consumers.
MORE:
https://www.mining.com/web/china-ends-gold-tax-break-in-setback-for-key-bullion-market/
https://finance.yahoo.com/news/gold-drops-back-below-4-234719420.html