TIB for withdrawal of import duty on gold

Transparency International Bangladesh (TIB) today urged the government for withdrawing duty on gold import to get the nation rid of the smuggling and to bring transparency in the trade of the metal in the domestic market.

Reduction of duty as well as framing of policy on gold import will encourage import of the metal through legal channels and reduce smuggling and also create a facilitating environment for gold trading inside the country where Tk 25 crore worth gold is traded a day.

 “We have a big market of gold inside the country. The gold is popular here and there is public interest towards it. We do not want the sector to be dependent on gold smuggling with unethical means,” Executive Director of TIB Iftekharuzzaman said at a press conference at its headquarters in Dhaka.

TIB came up with the suggestion after it found in a study on Transparency and Accountability in the Gold Sector in Bangladesh that the gold market is controlled mainly by gold and jewelry traders.

“The government virtually does not have any control over gold trade. The gold sector in the country suffers from lack of accountability, documentation is dependent on smuggling. Huge irregularities and corruption also exist in various stages of the sector,” TIB Director Research and Policy Mohammad Rafiqul Hassan said while presenting the findings of the study.

The civil platform said gold smuggling into the country continues with the help of a section of officials of law enforcing agencies, land port authorities, Biman and of private airlines. It said smuggling ring has roles to create barrier in framing of a comprehensive policy on gold import and trade in the country.

“We are following a destructive dual policy. On the one hand we are allowing trade of illegally imported gold in the domestic market. On the other hand, we are yet to frame a policy to ensure proper import and trade of the metal,” said Hassan, who co-authored the study.  

The government is yet to frame a comprehensive policy to facilitate easy and faster import of the gold through legal channel, said the TIB, unveiling findings of its study on Transparency and Accountability in the Gold Sector in Bangladesh at its headquarters in Dhaka.

It said reduction of import duty as well as framing of policy on gold will encourage import of the metal through legal channels, reduce smuggling and create a facilitating environment for gold trading inside the country where Tk 25 crore worth gold is traded a day.