22.11.2019

Gold will make it more attractive for private investors

In the explanatory note to the bill stated that demand for gold will be the savings of citizens, which they keep under the mattresses, — the authors write that they are estimated in 4 trillion roubles. The budget will receive more than 19 billion rubles as tax payments in budgets of all levels, not to mention the growth of revenues from the tax to incomes of physical persons and insurance contributions to state extra-budgetary funds, according to the text of the document.

The idea to abolish VAT on gold bullion is not new, but this time it is serious, the law takes a high chances of being admitted, a source told Forbes the Ministry of Finance.

In Russia, investing in gold is really not very popular, in particular because of the tax, the Director of the investment Department Wealth Management UFG Alexey Potapov. The abolition of VAT needs to raise new money in this tool: “against the background of rising gold prices and purchases by the Bank of Russia to think about buying maybe a wider range of retail investors,” he said.

“Gold bars are easier to fake than coins, in addition, they are illiquid, so the demand for them by the oligarchs under the Golden toilet store”, objected to the Director for investments “TKB investment partners” Vladimir Chuprov. As an investment tool gold for 120 years barely fought off inflation in the U.S., he said.

On the market there are alternatives to buying gold bullion in the first place, depersonalized metal accounts. “According to such accounts of the high Commission, they can reach 5% for deposits and 10% for the withdrawal. “These accounts are not covered by the warranty, the fixed rate of return on them is close to zero, and the income subject to personal income tax,” says Potapov. The same group of senators introduced a bill exempting the income from the depersonalized metal accounts from personal income tax. We are talking only about income from the increase in the value of investments, if the funds in such account were kept for three years or more. Interest thereon will be subject to income tax in any case, stated in the explanatory Memorandum. Also, the authors of the package of bills propose to extend the Deposit insurance system in Unallocated metal accounts.

The purpose of this measure is to force citizens to carry in banks savings from “mattresses”. Their volume in this bill is estimated at 6.3 trillion rubles, which is different from figures 4 trillion rubles, specified in the bill for exemption from VAT the purchase of gold bars. “Currently, the volume of savings in Unallocated accounts is estimated at 100-150 billion rubles, which is only 1.6-2.4% of the total value of deposits in foreign currency and precious metals. In addition, savings of the population as of the beginning of 2019 in the form of cash of $ 6 315 billion rubles,” said the explanatory note.

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