Gold prices are expected to decline in the upcoming fiscal year as the government has proposed to withdraw the value added tax (VAT) on the import of gold bar in the national budget.
"I propose to withdraw 15 per cent VAT on the import of gold bar to discourage illegal import and encourage the import of gold on legal routes through authorised dealers," Finance Minister AHM Mustafa Kamal said in his budget speech on Thursday.
Despite the Gold Policy 2018, gold has not been imported legally into the country due to the existing high tax incidence, he said.
"I hope this measure will boost gold importation through the legal route, expand the local gold ornaments making industry and enhance VAT at the local stage," he added.
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