New Delhi: In a major development China has decided to end the old tax exemption on gold. This key decision has come into effect from November 2025. The gold prices in China are expected to rise by three to five percent following this decision. According to the experts this move could also have a direct impact on the global gold market. They further added that gold prices may once again witness an upward trend. It is important to note that according to the new rules of Chinas Ministry of Finance from November 1 2025 retailers will no longer be able to claim a value-added tax (VAT) exemption on gold purchased from the Shanghai Gold Exchange. The rule will apply to high-purity gold bars and coins. It will also affect the sale of gold used in jewelry and industrial applications. Here are some of the key details: The direct effect of this decision will be a three to five percent increase in retail gold prices in China. China’s move has already caused a stir in the global bullion market. Experts link this step to China’s weakening economy and the government’s strategy to boost revenue. China is among the world’s largest gold-consuming countries. If taxes rise in China it will inevitably affect global demand and prices. Ending tax exemptions will make gold purchases more expensive in China which could reduce consumer demand. This shortfall is likely to be offset by higher prices in international markets. As a result gold futures and international spot market prices may see an upward trend. Impact on India India is the world’s second-largest consumer of gold. It is important to note that the domestic prices of gold are directly linked to the international market. If gold prices rise globally due to higher taxes in China gold will become costlier in India as well. Experts estimate that gold prices in India could increase by around 3 percent to 5 percent.