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New body to set tax incidence in gold trade

FE Report | November 06, 2018 00:00:00

The government on Monday formed a five-member committee to determine tax incidences in the domestic gold trade.

The development came a month after devising the country's first-ever gold policy.

A tax incidence is related to the price elasticity of supply and demand, making a division of a tax burden between buyers and sellers.

The panel, led by senior commerce secretary Shubhashish Bose, was formed at a meeting with finance minister AMA Muhith in the chair at his secretariat office.

National Board of Revenue chairman Mosharraf Hossain Bhuiyan and finance secretary-in-charge Abdur Rouf Talukder, among others, were present.

Representatives from finance ministry, NBR and Bangladesh Bank are on the committee.

It has been asked to submit a report in the next 15 days with possible rates of customs duty, tax and Value Added Tax (VAT) in gold import and export.

After the meeting, Mr Bhuiyan told the FE that the committee will recommend the rates of VAT, income tax and customs duty to be realised at ports.

On October 03, the cabinet committee approved the gold policy to ease import and export of gold and ornaments.

The country's annual demand for gold, according to commerce ministry officials, is between 20 and 40 tonnes.

They said nearly 80 per cent of the demand is met by smuggled gold while the rest by recycled one.

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