The Bangladesh Jewellers’ Association (Bajus) has urged the government to reduce the current 5% value added tax (VAT) on jewellery sales to 3%.
At a post-budget press conference in Dhaka on Monday, Bajus said a bhori of 22-carat gold jewellery now costs Tk96,694, but with 5% VAT, the price rises to Tk105,203.
The association argued that this price increase places an additional burden on consumers.
They believe that a VAT reduction would lower the cost of ornaments, leading to increased purchases and ultimately generating higher government revenue.
In the proposed national budget for FY24, revised rules state that passengers can now bring only one gold bar weighing 117 grams into Bangladesh, compared to the previous allowance of two bars weighing 234 grams.
However, Bajus called for a further reduction in the limit for gold ornaments under baggage rules to 50 grams, aiming to support local goldsmiths.
Bajus Vice President Anwar Hossain, Assistant Secretary Shamit Ghosh (Apu) and Standing Committee Member Secretary Paban Kumar Agarwal attended the press conference.
Hailing the proposed budget for FY24, they said the budget accepted only one proposal out of 12 submitted by the trade body.
While briefing the media, Anwar Hossain said the country’s jewellery sector now needs policy support from the government, including different tax exemptions.
With the necessary support, the country’s jewellery makers could export ornaments to earn foreign currencies, he added.
“We express gratitude to the prime minister and the finance minister for amending baggage rules,” he said, adding that the move will help reduce gold smuggling and capital flight.
Reiterating the gold jewellers’ proposals ahead of the budget, he suggested using Electronic Fiscal Device (EFD) Machines in registered jewellery outlets as much as possible.
The association also suggested conditionally lowering customs duty from 5% to 1% on unrefined gold ore. It also requested a reduction in the various taxes and duties on imported rough diamonds.
The Bajus leaders urged the government to provide 25% of the recovered smuggled gold to the members of law enforcers, along with the customs, to further motivate them.
