Monday, 4 July, 2022
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Cut in tax on gold import likely

Cut in tax on gold import likely

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The government mulls over cutting tax on gold imports to encourage the import through the legal channel, according to sources at the Ministry of Finance.

Smuggling of gold into the country is on the rise due to the existing 5 percent tax on the import of precious metal, ministry sources said.

An international passenger is allowed to bring up to 234 grams of solid gold bar, paying Tk 2,000 in tax against one bhori (11.66gm) of the imported gold under the Baggage Rules of Bangladesh Customs.

On the other hand, a passenger can bring up to 100 grams of gold ornaments without paying any duty. He or she has to make sure that there are not more than 12 pieces of a single type of ornament.

Bangladesh Jewellers’ Association (BAJUS) senior vice-president Gulzar Ahmed hailed the government’s move to cut the advance tax on gold imports.      “We have requested the NBR to reduce our VAT to 2 percent from 5 percent. If the authorities make any positive move in this regard, it will encourage customers to pay VAT,” he said.

Bangladesh formulated its first-ever gold policy in 2018 with an aim to boost  import and export of gold and ensure transparency in its trade by bringing the gold sector of the country within a regulatory framework. The policy came into force on October 29, 2018.

This step led some private entrepreneurs to import gold as per the government rules and regulations.

According to sources at the commerce and industries ministries, Bangladesh’s annual demand for gold is up to 40 tonnes. The demand is met mostly by smuggled gold.