5% advance tax on gold import to be withdrawn

The government has proposed an withdrawal of 5 per cent advance tax on the import of gold in the fiscal year of 2022-23 to encourage the import of the precious metal through formal channels and discourage smuggling.

Finance minister AHM Mustafa Kamal revealed this in his budget speech in the parliament on Thursday.

Following the withdrawal of the advance tax, it will cost an importer around Tk 3,500 to bring in one bhori of gold. Earlier, it cost Tk 2,000 to bring a bhori of gold under the baggage rules while it cost importers around Tk 7,000 to import a similar quantity of bullion by opening letters of credit (LCs).

The move is expected to help the local jewellery industry grow and increase tax collection.

Dilip Kumar Agarwala, convenor of the Gold Importers' Association, welcomed the move, saying it will increase the import of gold through legal channels and help flourish the local jewellery industry.