Gold import to start by two months

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Golam Mowla
Published : 07:30, Nov 18, 2018 | Updated : 07:30, Nov 18, 2018

A woman buyer looks at gold bangles at a jewellery shop. REUTERSGold merchants say that the import of the precious yellow metal, for the first time in 47 years, is set to start in mid-January as the government has cleared the country’s first-ever gold policy.
“It will start within two months. We will be able to import after the national election,” said Ganga Charan Malakar, president of Bangladesh Jewellers Association (BAJUS).
On Oct 3, the Cabinet cleared the ‘Gold Policy 2018’ allowing the central bank to license businesses to import and export.
Amid traders’ preparation, the government has stepped in to raise value added tax (VAT) on the precious metal.
A five-member committee, headed by commerce secretary, has been formed to set a new duty on import and export.
The committee will make recommendation on how to bring all gold, available in the country, under the authorities’ scanners.
Back in 2011, the government imposed Tk 3,000 VAT on per ounce (28.28 grams) of import.
Finance Minister AMA Muhith has proposed to revise it down to Tk 1,000 on per 11.664 grams of import, which merchants say was too high.
“It’s necessary to cut to allow business from imported gold,” Malakar said.
The BAJUS recommended the VAT be reduced at Tk 300 per 11.664 grams.
“No trader has ever imported a tola of gold (approximately 11.34 grams) since 1971, when Bangladesh became independence.
We have been seeking import license over the past 48 years,” said BAJUS Secretary General Dilip Kumar Agarwala.
BAJUS President Malakar, however, said an insignificant amount of gold enters the country under baggage rules.
Under the National Board of Revenue’s baggage rules, gold, weighing maximum 100 grams, can be brought to the country without paying duties.
Gold bars, weighing maximum 234 grams, can be brought by paying Tk 3,000 duty on per 11.664 grams.
According to an estimate, Bangladesh’s annual demand for gold is between 30 and 40 tonnes and most of it is sourced through the grey market.
A joint investigation conducted by the Bangladesh Bank, National Board of Revenue, Tariff Commission and Industries Ministry revealed that gold is not brought in Bangladesh through proper channels at all.
It’s smuggled in from some countries, including Dubai and Singapore to sell in the local market.
There’s no record with the government of the gold and jewelleries stocked by merchants.
Merchants can legalise the gold they have stocked by paying Tk 1,000 VAT per bhori (11.663 grams). They, however, want to pay Tk 300.
According to Bajus, there are nearly 128,000 jewellers across the country with nearly 10,000 of them based in Dhaka. The industry employs over 150,000 people.

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