Gold traders wish to legalise undeclared gold for Tk 1,000 per bhori

Gold traders have urged the authorities to allow them to legalise or “whiten” undeclared gold by paying a tax, a facility that was previously offered by the government.

Leaders of the Bangladesh Jewellers Association (BAJUS) said the earlier provision allowed gold to be declared legal upon payment of Tk 1,000 per bhori, but many traders were unable to avail themselves of the opportunity at the time. They have now proposed reinstating the facility.

At the same time, gold traders have demanded easier import policies and open licensing, saying that legal avenues for importing gold would help them avoid allegations of smuggling.

The demands were raised on Wednesday at a stakeholder meeting titled “Meet the Business”, organised by the National Board of Revenue (NBR).

The meeting, chaired by NBR chairman Md Abdur Rahman Khan, was attended by representatives of BAJUS and held at the Revenue Building in Agargaon, Dhaka.

Speaking at the meeting, BAJUS president Enamul Haque Khan Dolon said, “Our country does not produce gold, yet there are stocks amounting to hundreds of thousands of bhories. Previously, the government allowed gold to be legalised by paying Tk 1,000 per bhori. That facility could be introduced again.”

Explaining the reasons behind rising gold prices, Enamul Haque Khan said that after paying VAT on gold imported from Dubai, a price difference of Tk 25,000 to Tk 30,000 per bhori emerges.

"No one wants to buy gold domestically at such a high price. As a result, many buyers purchase gold abroad and bring it back with them,” he said.

He added that traders have to pay 5 per cent VAT at the time of import and another 5 per cent at the time of sale, whereas the VAT rate in India is only 3 per cent.

“If Indian visas are reopened, we will lose our customers,” he warned.

Sumit Ghosh, owner of Fancy Jewellers, said, “Our business is 50–60 years old and family-run. Yet we have not received a licence despite applying for one. While traders like us are denied licences, cricketers have received them. We want to import gold legally and are willing to pay the government to operate as lawful traders.”

BAJUS adviser Snehasish Barua said sourcing gold is the biggest challenge for the industry. “Many countries procure gold from the United Arab Emirates (UAE) through government-to-government agreements. We also have the opportunity to pursue such arrangements,” he said.

Gold artisan Uttam Banik said there is no standard mechanism for sourcing gold domestically. “If we could procure gold from the open market, the government would also earn revenue. A designated bank could be given this responsibility so that everyone can source gold from there. This system exists in India as well,” he added.

Former acting BAJUS president Gulzar Ahmed suggested that Bangladesh Bank itself could import gold. “We could then purchase gold from there as per demand. Currently, if we source gold from Tanti Bazar, we receive no documentation,” he said.

NBR chairman Md Abdur Rahman Khan assured traders that the authorities would look into resolving their concerns.

“Allowing gold to be legalised is a major policy issue, and such a decision may need to be taken through parliament,” he said, adding that efforts would be made to address issues under the NBR’s jurisdiction.

He also advised traders to discuss licensing matters with Bangladesh Bank and import policy issues with the commerce adviser and secretary.

BAJUS members and gold traders from different parts of the country were present at the meeting.