BAJUS for reducing VAT on jewellery sales to 3%

The Bangladesh Jewellers' Association (BAJUS) has proposed cuts in the value-added tax (VAT) for jewellery sales from the existing 5 per cent to 3 per cent.

This demand was made during a press conference held at the BAJUS office in Bashundhara City Complex in the capital regarding the proposed FY24 budget.

BAJUS Vice President Anwar Hossain presented the written statement on behalf of the association.

According to BAJUS, the current cost of a bhori of 22-carat gold jewellery is Tk 96,694. With a 5 per cent VAT, the price will rise to Tk 1,05,203. This price increase places an additional burden on consumers, the association added.

However, BAJUS believed that a VAT reduction would lower the cost of ornaments, encouraging more purchases and leading to increased government revenue.

Furthermore, BAJUS highlighted amendments to the baggage rules in the proposed budget for the FY24. Under the revised rules, passengers are now allowed to bring only one gold bar weighing 117 grams to Bangladesh, whereas previously they could bring two bars weighing 234 grams.

Anwar Hossain said this step will significantly contribute to curbing gold and money smuggling in the country.

Gold bars or ingots were freely entering the country through the baggage rule, enabling smuggling both within and outside the country, he added.

Despite some positive aspects of the latest national budget, Anwar Hossain expressed disappointment on behalf of the jewellery industry, as their expectations still needed to be fully met.

BAJUS emphasised the need for controlling the import of gold ornaments, similar to gold bars, and proposed a reduction in the baggage rule limit from 100 grams to 50 grams. This measure aims to safeguard the local jewellery industry.

/KN/