Large scale gold smuggling continued to hit Philippineâ€™s economy as reports said nearly 95 percent of gold trade in the country made through black markets.
MANILA(BullionStreet): "Large scale gold smuggling continued to hit Philippine’s economy as reports said nearly 95 percent of gold trade in the country made through black markets.
"Country's central bank, the Bangko Sentral ng Pilipinas, which is required to buy all the gold from local producers as per law, said it get only about 5 percent of gold produced in the country.
"Higher tax rates on gold imposed by Philippines forced small scale miners to sell gold elsewhere as the7-percent tax, usually borne by the traders, is imposed on gold sales to the BSP.
"Analysts said gold tax, made up of a 5-percent withholding tax and a 2-percent excise tax that the BIR started to enforce last year, was the biggest factor behind the spike in gold smuggling. ..."
Taxes. Wow. Why would taxes drive people to the black market? <sarcasam alert>