Jewellers for VAT cut in next budget

Sonia H Moni | Published: March 26, 2015 00:00:00 | Updated: November 30, 2026 06:01:00

Jewellers in the country sought a cut in the rate of Value Added Tax (VAT) to 1.5 per cent in the national budget for the fiscal year 2015-16, Bangladesh Jewellers Samity (BJS) general secretary Enamul Haque Khan said.
"We are now paying 3.0 per cent VAT on the total sale of gold ornaments. If the government reduces the rate of VAT in the next budget, it will help us attract people to buy gold. It will also help increase VAT," he said.
Mr Khan said smuggling in gold was on the rise due to the high duty, depriving the government of revenue earnings. "So, we have proposed reduction in the duty from existing Tk 3,000 (for 200 grams) to Tk 150 for 11.664 grams each or a bhori."
They also sought permission for jewellery businessmen to bring two kilograms of gold (with selling permission) instead of the existing 200 grams of gold and silver on payment of Tk 150 against the existing Tk 3,000 as duty for each bhori (11.664 grams).
They demanded withdrawal of the existing 4 per cent Advance Trade VAT (ATV) for the sake of betterment of the jewellery industry.
The BJS leaders proposed that the government allow non-resident Bangladeshis or travellers to bring 200 grams of gold or silver ornaments without paying any duty as per baggage rules. Now a traveller can bring 100 grams of gold or silver ornaments without any duty.
The BJS also suggested formulation of a gold policy as in countries like India, Pakistan, Sri Lanka and Nepal to give the gold industry a boost.
Regarding diamond, Bangladesh Jewellery Manufacturers and Exporters Association President Anwar Hossain urged the government to fix the duty on import of loose diamond at 30 per cent against the existing 152 per cent including VAT, Advance Income Tax (AIT), supplementary duty and customs duty.
He also proposed a cut in the customs duty on diamond as the existing duty is 60 per cent.
High duty discourages travellers to declare the exact amount of loose diamond and diamond jewellery they carry, he said. It also deprives the government of revenue earnings, he added.
ironlady_007@yahoo.com