China withdraws VAT offset on gold sales from November 1, tightening fiscal control and raising retail costs

China ended its VAT offset incentive on gold sales effective November 1, 2025, removing a key tax relief that previously benefited jewelers and retail buyers. The move is part of Beijing’s broader fiscal tightening to stabilize revenues and manage inflationary pressures amid a volatile global commodities landscape. Analysts warned this could increase gold prices domestically and moderately impact global bullion demand. Industry observers said the decision aligns with the government’s broader strategy of optimizing tax collections while discouraging speculative investment flows in physical assets.