The implementation of the new gold tax policy has caused businesses in Shuibei to stop operations and wait and see. Brands like Zhou Shufu have urgently adjusted prices.

Businesses have come to a standstill and dare not make any moves. They would rather not sell than sell recklessly. Today, many Water Shell businesses told reporters that everyone is currently watching and waiting. On November 1, the Ministry of Finance and the State Administration of Taxation jointly issued an announcement on the relevant tax policies for gold, which clearly differentiates tax management for gold transactions based on investment and non-investment purposes. Previously, companies could deduct 13% value-added tax when purchasing raw materials, but under the new policy, these processing businesses - including gold jewelry, ornaments, and industrial gold - can only deduct 6% value-added tax, resulting in an actual tax burden increase of about 7%. Some merchants in the Water Shell market previously relied on the industry practice of avoiding taxes by not providing invoices, but after the new policy was implemented, compliance costs increased significantly, forcing businesses to raise prices in order to maintain profits. At 12:00 on November 3, the price of gold in Water Shell was around 930 yuan/gram; but by 14:30, it skyrocketed to 992 yuan/gram, and by 18:00, it had risen to 996 yuan/gram, with a single-day increase exceeding 66 yuan/gram, the largest in five years. Today, when the reporter checked the prices, the current price of gold in Water Shell was quoted at 991 yuan per gram. A merchant mentioned to the reporter that the price increase follows the market trend. He believes that it is certain that consumption will cool down in the short term. In order to cope with the changes in costs, some branded chain businesses have also adjusted their prices accordingly. On the 3rd, Chow Tai Fook Jewelry responded that the recent announcement of the gold-related tax policies has brought additional costs to gold procurement and production. Therefore, Chow Tai Fook Jewelry has adjusted the prices of some gold products starting from November 3.