Bangladesh Jeweller’s Association (BAJUS) has urged the government to reconsider lowering the maximum limit from 100 grams to 50 grams regarding brining jewellery under baggage rule in the proposed budget for the fiscal year 2023-24.
At a post-budget press conference held at its office in Dhaka on Monday, the association also demanded 10 more facilities, including reducing the VAT rate from 5 per cent to 3 per cent on sales of jewellery items in the FY24.
BAJUS vice president Anwar Hossain said, “On April 4, we put forward 12 proposals in the budget for the FY24 which reflect the hopes of the jewellers.”
“But unfortunately, none of the proposals has been accepted in the proposed budget except one. It was disappointing and it might also affect the industry.”
“Government needs new sources of revenue to meet budget deficit. The jewellery industry can go a long way to meet the budget deficit if the VAT rate imposed on the sector is reduced,” he added.
He also explained that 5 per cent VAT levied on the sale of gold ornaments seems to be a burden on customers as many of them are reluctant to pay it. So, it affects revenue of the government as well.
BAJUS is demanding reconsideration of the 11 proposals made by it in the proposed budget for FY24.
They also proposed reducing customs duty (CD) levied on unrefined ore gold from 5 per cent to 1 per cent conditionally, and 5 per cent for IRC holders and VAT-compliant industries instead of 10 per cent for partially refined gold.
For rough diamonds imported by authorised institutions, BAJUS sought to decrease CD from 25 per cent to 10 per cent, and supplementary duty (SD) from 2 per cent to 10 per cent. VAT, AIT, and RD should be kept unchanged.
To encourage the import of smooth diamonds through legal channels, BAJUS demands reduction of SD from 60 per cent to 20 per cent.
BAJUS also emphasized the tax holiday facility for 10 years for the gold refining industry and a tax holiday for 10 years including exemption from all customs duties on imported raw materials and machinery to be used for manufacturing gold ornaments.