Sou Hu Cai Jing·2025-11-03 13:11Core Viewpoint - The new gold tax policy, effective from November 1, 2023, introduces a refined adjustment to the value-added tax (VAT) on gold transactions, exempting VAT for standard gold sold through exchanges while imposing VAT on gold sold outside these channels, leading to significant market reactions and price fluctuations [1][3][4]. Tax Policy Changes - The new tax policy differentiates between investment and non-investment uses of gold, with standard gold sold through exchanges being exempt from VAT, while non-exchange sales incur a 13% VAT [4][5]. - The policy aims to enhance the attractiveness of trading standard gold through exchanges, thereby influencing consumer behavior towards more compliant and cost-effective purchasing channels [5][9]. Market Reactions - Following the announcement, major banks like Industrial and Commercial Bank of China and China Construction Bank suspended certain gold accumulation services, reflecting a cautious approach to market volatility [6][7]. - There has been a surge in demand for physical investment gold bars, with many brands experiencing price increases and product unavailability on e-commerce platforms [8][9]. Price Fluctuations - The price of 10-gram gold bars has risen to over 10,000 yuan, up from around 9,000 yuan prior to the policy announcement, indicating a market response to anticipated tax implications and supply-demand dynamics [1][8]. - Analysts suggest that the price changes are more indicative of market sentiment and liquidity adjustments rather than a fundamental change in gold's intrinsic value [9]. Consumer Behavior - The new tax policy is expected to lead to a clearer distinction in consumer understanding of gold products, promoting a more rational approach to purchasing based on investment versus consumption needs [5][9]. - Consumers are advised to consider the tax advantages of exchange-traded gold products for investment purposes while being mindful of price fluctuations when purchasing gold jewelry [9].