5% Source Tax on Gold Imports to be Scrapped

SEATTLE (Scrap Monster): As part of efforts to encourage gold imports through official channel and put breaks on the flow of smuggled gold into the country, the Bangladesh administration plans to scrap the existing 5% source tax on gold imports into the country, said Finance Ministry officials.

As per the country’s existing rules, an international passenger is allowed to bring up to 234 grams (equivalent to 20 bhoris) of gold, by paying a tax of Tk2,000 per bhori of the imported gold. Also, a passenger is allowed to bring up to 100 grams of gold ornaments without paying any duty, provided the number of pieces of a single type of ornament does not exceed 12.

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Earlier in 2018, the government had launched a Gold Policy for the country, aimed at boosting the import and export trade of gold and ensuring transparency in its trade by bringing the gold sector under a regulatory framework.

The Finance Ministry officials hoped that the removal of source tax would be a great relief for the jewellery industry in the country that has been demanding several favourable actions including reduction of VAT from 5% to 2%. At the same time, the new policy action is expected to boost the government’s revenue earnings.

Bangladesh’s annual gold demand amounts to approximately 40 tonnes, with smuggled or recycled gold meeting majority of it.