Malaysia imposes a 10% import tax on gold bars, causing turbulence in the gold trade.

According to informed traders, Malaysia has imposed a 10% tax on some imported gold bars, impacting the country's gold spot trade. Several unnamed traders and dealers have stated that since early May, some imported gold bar shipments have been subjected to a 10% import tax. Since local gold prices have not risen accordingly, the additional tax burden has caused imported business to incur losses, leading to some shipments being temporarily detained by customs and some owners diverting their goods to other areas. Malaysia's Muamalat Islamic Bank issued a statement this week stating that once gold bars are subject to a 10% import tax, the related costs will be passed on to consumers. A spokesperson for the Royal Malaysian Customs Department stated that the Ministry of Finance will communicate with the industry regarding the import of minted gold products. Representatives of the Malaysian Gold Association and the World Gold Council in Malaysia both declined to comment.