Budget indifferent towards jewellery industry’s demand

Bangladesh Jeweller’s Association (BAJUS) claimed that the proposed budget didn’t reflect anything to address its demands of the trade body except change in baggage rules.

“The government should reconsider the tax and duty on jewellery industry to enable Bangladesh to compete with global market.

The sector can contribute to national exchequer significantly to beef up the foreign currency reserve,” Anwar Hossain, vice-president at BAJUS told a press conference on Monday.

BAJUS advisor Ruhul Amin Rasel, assistant secretary Samit Ghosh Apu and taxation standing committee member secretary Paban Kumar Agarwala were also present at the post-budget briefing at Bashundhara City Shopping Complex in the capital.

The jewellery industry trade body appeared to media after Finance Minister Mustafa Kamal tabled budget for FY 2023-24 in the Parliament on June 1.

The BAJUS appreciated amendment to baggage rules in the proposed budget.

Finance Minister proposed to lower the limit of carrying gold bar or pieces from 234 grams to 117 grams by an individual and doubled duty from Tk 2000 to 4000 regarding this.

BAJUS leaders demanded further cut in baggage facility to 50 gram to ‘flourish the local jewellery industry’.

The trade body also sought reduction in value added tax from 5 to 3 percent on retail sales of gold, silver and diamond ornaments.

BAJUS leaders hoped that the gold industry has potential to fetch more investment if the complementary duty on importing gold ore goes down from 5 to 1 percent. Besides, the duty on importing semi-refined gold can be revised from 10 to 5 percent to flourish local industry of gold bars and hand-made ornaments.

BAJUS leaders reiterated their demand of ‘ten-year tax holiday’ for gold refinery to for supporting the growth of jewellery industry.

The trade body sought lowering value added tax from 5 percent to 3 as many customers reluctant jewellery with tax while some traders tried to escape the tax by wrong way. The government should make rules making mandatory Electronic Fiscal Device (EFD) for all jewellery shops.

The businesses demand cut in customs duty on gold ore from 5 percent to 1 percent for developing gold processing industry in Bangladesh. It also hopes that the gold ore will enjoy 5 percent customs duty instead of 10 percent as a VAT complaint industry.

Besides, the trade body also proposed the authorities concerned to set 'business friendly' duty on rough diamond to flourish 'cutting and processing' industry.

The businesses mentioned that diamond ornaments can make 40 percent value addition if they get affordable duty structure on importing raw materials. It also reiterated stance for rewarding customs staffs for seizing smuggled gold.

According to BAJUS, the annual demand for gold in Bangladesh is 40 tons while the global market transacts 47.4 hundred tons.