Gold Imports at Nil Duty to Boost Sector Growth

SEATTLE (Scrap Monster): The country’s government must allow duty-free imports of gold by private agencies in order to facilitate growth of gold sector in Bangladesh, says experts.

According to renowned economist Alsan H Mansur, the sector’s growth has long been hindered by gold’s close association with smuggling acts and the prevailing misconception that the metal is meant only for the rich and elite class. The government should revise aged gold policy to be in tune with latest market trends. It should ponder proposals to impose value added tax (VAT) on gold sales, after allowing for duty-free imports of the yellow metal, he noted.

The increased participation of private sector entrepreneurs could lead to notable development of jewellery industry in the country. He cited the examples of thriving gold jewellery markets in neighbouring countries such as India and China, which have adopted global design trends to craft ornaments for markets across the globe. Despite having skilled goldsmiths, Bangladesh has not been able to produce internationally acclaimed gold jewellery products. He urged local jewellers to explore ways to tap international market.

As per rough estimates, 90% of the gold imported by the country are through illegal channels, which in turn has largely prevented the growth of the sector.