Gold import: Advance tax withdrawn
Withdrawal of the existing 5 percent advance tax on gold import has been proposed in the budget for fiscal 2022-23 to encourage import of the precious metal through formal channel and discourage its smuggling.
The government made the decision expecting that it will lead to much growth of local jewellery industry and increase tax revenue collection.
Annual local demand for gold ranges between 20 and 26 tonnes and a large part of it is recycled, according to industry insiders and customs officers.
But since the Gold Policy came into force in 2018, only 253kg was imported for business purposes through LC (letter of credit) as of February this year, said immediate past director general of Customs Intelligence and Investigation Directorate Abdur Rouf.
Dilip Kumar Agarwala, convenor of Gold Importers' Association, said though the policy was enacted in 2018, eighteen dealers and a bank obtained licences from Bangladesh Bank in 2020.
"Since then, I have imported over 100kg of gold bars through legal channel," Agarwala, also the managing director of Diamond World Ltd, told The Daily Star yesterday.
He said it earlier cost Tk 2,000 to bring one bhori of gold under the baggage rules while it costs around Tk 7,000 to import one bhori through LC.
"With the withdrawal of five percent advance tax, it will cost an importer around Tk 3,500 to import one bhori of gold in bullion," said Agarwala, also general secretary of Bangladesh jewellers' association.
Welcoming this move, he said it would increase import of gold through legal channel and help flourish the local jewellery industry.
Statistics of customs show travellers have been bringing around five tonnes of gold through the airports in Dhaka and Chattogram every month legally with four tonnes via the airport in Dhaka under the baggage rules.
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