Chinese authorities are considering re-levy of VAT on gold after the tax was exempted for 14 years,according to Shanghai Securities News.

    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'sgold industry.

    It is learnt that so far relevant authorities have not yet reached consensus on the gold VAT re-levy issue. The above-mentioned departments 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 in2002.