Illegal gold to be made legal!

Golam Mowla
Published : 02:00, Dec 29, 2018 | Updated : 16:46, Dec 29, 2018

After election, efforts may be taken to auction gold reserved at the Bangladesh Bank. REUTERS/file photoA gold fair will be organized where traders will be given a chance to legalise illegal gold. In addition, by giving Tk 1000 to the government for each Bhori, smuggled gold can also be legalized.

This decision was taken at a VAT, tax-related meet. As per the decision taken, the gold preserved at the Bangladesh Bank will be auctioned. President of the Bangladesh Jewellers’ Association, Gangacharan Malakar, told Bangla Tribune, “After election, we will arrange a gold fair in the country; we will also give tax to the government.”

Though the government took VAT, tax from traders there wasn’t any legal source for gold, which we will be getting now, he added.

After election, efforts may be taken to auction gold reserved at the Bangladesh Bank.

Bangladesh Bank official say, “Though there are a few tonnes of gold in the central bank vault, much of it is entangled in a legal case.”

Traders say, the yearly demand is 30 to 40 tonnes of gold, most of which comes illegally.

Since traders used to make ridiculously low calls for gold placed at auction, the central bank had suspended the auction for the last ten years.

Bangladesh Bank former spokesperson, M Mahfuzur Rahman, told Bangla Tribune, “Gold traders make the most profit from gold coming through an illegal way and that’s why they used to make low calls for gold auctioned at the central bank.”

Since there has not been an auction, there is reportedly a mountain of gold at the central bank. In the last auction, held on 23 July 2008, 21 kg 822 grams of gold were sold.

According to customs and central bank’s information, in the last four years, 2000 kg of gold was recovered from different airports.

Reportedly, at present the central bank has 963 kg of gold in the Bangladesh Bank vault.

Bangladesh Jewellers’ Association president Gangacharan Malakar says, “We will be able to import gold after election.”

On Oct 3 last, the cabinet has approved a gold policy. As per a recent VAT, tax meet, it was decided that those who have illegal gold can have it legalized by paying the government Tk 1000 per bhori; for importing, the tax is Tk 2000 while VAT will be 5 percent.