6/05/99 - China Planning Gold Price Reform
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BEIJING (June 6) XINHUA - Plans are being drawn up to reform China"s pricing system for its gold products to keep pace with changes in the world market.
The aim is to keep prices in line with the world gold market which will improve competition and encourage innovation and creativity in design, according to a source at the State Development Planning Commission.
The reform measures include: changes in retail and wholesale prices based on fluctuations in the world market; separating actual prices from processing fees; altering procedures for setting prices in ratio to weight; and reducing taxes in a bid to lighten the financial burdens on relevant producers.
China"s authorities have long exercised tight control over gold products, resulting in price differences between the domestic and global markets.
Prices of gold ornaments in China"s mainland areas are 20 to 35 yuan higher per gram on average than those in Hong Kong Taiwan, Thailand, and Singapore.
In addition, taxes paid by China"s gold enterprises are higher than those in other southeast Asian nations and regions, with the value added tax rate and consumer tax rate standing at 17 percent and 5 percent, respectively. In contrast the Republic of Korea and Thailand have a value added tax levy of 10 percent, and Singapore charges only 3 percent consumer tax.
According to official statistics China used approximately 192 tons of gold in 1998, making it the fourth largest gold market in the world as well as number one in the Far East.
China now has 340 gold ornaments manufacturing and wholesale firms, and more than 10,000 retail sales outlets, which use over 200 tons of gold annually resulting in 30 billion yuan worth of business volume. Enditem 06/06/99 02:31 GMT |
