VAT Relief Expected to Lift Gold Market

Gold traders will benefit from the new government decision to adjust value added tax on gold trade, head of the Mashhad Gold and Jewelry Union said.
“VAT relief could encourage people to buy gold. This can ultimately help revive the gold market,” Mohammad-Baqer Ma’boudi-Nejad was quoted as saying by Bank-e-Mardom (people’s bank) website.
The government recently announced new tax rules, as per which the original value of gold will no longer be taxable and VAT will be levied only on services, profit and fees.
“Compared to the past gold buyers will pay 8% less,” Ma’boudi-Nejad said, expressing the hope that the decision would stimulate Iran’s gold market in which prices have gone through the roof leaving most jewelers in a quandary.