In the budget proposal, Finance Minister AHM Mustafa Kamal has proposed to withdraw the existing advance tax on the import of gold in a bid encourage imports through the formal channel.
“I propose to withdraw advance tax on import of gold with a view to encouraging import of gold through formal channel and discouraging gold smuggling in the country,” Kamal said in the budget speech.
This will hopefully lead to much growth of the jewelry industry in the country and increase tax revenue collection, he said.
“The Gold Policy-2018, which came into force on October 29, 2018, was made with a view to increasing government revenue by bringing the gold sector of the country within a regulatory framework.
“This has created some private entrepreneurs, who are interested to import gold through the proper channel adhering to government rules and regulations,” he said.
According to the Customs Intelligence data, the department seized 174kg of smuggled gold in the last fiscal and recovered over 201kg in just first 10 months of the incumbent fiscal year.
The current scenario shows gold smuggling has been increased sharply.
An individual can carry two gold bars, weighing 234 grams or 20.07 bhori as paying the customs duty of Tk 40,000 under the Baggage Rules-2016 and in this legal way, the travellers legally brought around 60 tonnes of gold bullion and ornaments last year, according to customs source.
At present, jewellery items are being sold at Tk 79,548 a bhori (11.664 grams) by decreasing Tk 2,917 per bhori from May 27.
The fresh prices are based on decreasing gold prices in the bullion market as well as the fall of the dollar and other currencies owing to the global economic crisis, said BAJUS at a press release issued on May 26.
Bangladesh Jewellers’ Association (BAJUS) announced the price fall in all types of gold as the rates went down in the international and local bullion markets, said the press release.
