Govt revises down gold import duty

The government revised downward on Wednesday the import duty on gold to Tk 2000 per bhori from existing Tk 3000, officials said. A meeting chaired by Finance Minister AMA Muhith at the secretariat also fixed duty on undeclared stocks of gold at Tk 1000 per bhori, on diamond at Tk 6000 per carat, and on silver at Tk 50 per bhori. The existing 5.0 per cent VAT (value added tax), however, will remain unchanged, the meeting decided. The meeting also decided to hold an auction of gold deposited in the central bank's vault soon. The auction has remained suspended for a decade, according to officials. "We have finalised the rates today (Wednesday)," the minister told newsmen after the meeting without elaborating. A gazette notification in this regard will be published within a month, he added. Officials said a report of an inter-ministerial committee on fixing the duty rate for gold and other precious metals was placed at the meeting. The meeting finalised the duty rate after a detailed discussion on the report, they added. In October this year, the government framed the country's first ever Gold Policy-2018, allowing authorised dealers to import gold bars and ornaments, said the officials. According to commerce ministry officials, the country's annual demand for gold is between 20 tonnes and 40 tonnes. But nearly 80 per cent of demand is met by smuggled gold while the remaining demand by recycled one, they said.
FE Report