National Board of Revenue may reduce the tax on bringing gold and gold ornaments by international passengers under baggage rules to facilitate availability of the precious metal in legal way in the country.
NBR may allow an international passenger to bring gold and gold ornaments up to 234 gram or 20 bhari by paying Tk 1,000 per bhari (11.664 gram) along with 100 gram gold and gold ornaments without paying any taxes.
Currently, an international passenger pays Tk 3,000 per bhari for bringing gold and gold ornaments up to 234 gram along with 100 gram without paying any taxes.
Officials said that the move would increase the supply of the precious metal in legal way in the country as currently the sector was highly dependent on illegal supply including smuggling.
They said that NBR was also going to arrange gold fair across the country to encourage jewellers, traders and dealers to legalise their undeclared stocks of gold, gold ornaments, diamonds and silver.
The gold fair would be held at eight divisional cities where traders would make the declaration and make their stocks legalise by paying taxes at the prescribed rates.
The fair would be held at Dhaka, Chattogram, Khulna, Rajshahi, Rangpur, Mymenshingh, Sylhet, and Barishal so that jewellers from across the country could easily take the opportunity.
The fair in Dhaka and Chattogram would be three-day long while in other cities it will be two-day long, they said.
Income tax wing of NBR on May 23 issued a gazette notification giving a time frame up to June 30, 2019 for taking the opportunity.
Undeclared gold, diamond and silver would become illegal after June 30, officials said.
Traders, including jewellers and dealers, will be able to legalise their undeclared precious metals by paying Tk 1,000 for a bhari (11.664 gram) gold and gold ornaments, Tk 6,000 per carat cut and polished diamond and Tk 50 per bhari of silver.
Income tax authorities would not ask any question on the acquired prices and the time of acquiring of the gold, gold ornaments, diamonds and silvers to be made legalised under the notification.
Income tax zone Dhaka-1 and income tax zone Chattogram-1 would arrange the fair on June 23-25 in respective cities while income tax zones Khulna, Rajshahi, Rangpur, Mymenshingh, Sylhet and Barishal would arrange the fair on June 24-25 in those cities.
Tax officials would help the jewellers to make the declaration and payment of tax.
Members of Bangladesh Jewellers Association, authorised dealer banks, firms and companies licensed by the Bangladesh Bank and other goldsmith would be allowed to participate in the fairs.
NBR was expecting to receive at least Tk 400 crore from the move of legalising illegal gold and other precious metals.
NBR offered the scope of legalising undeclared gold, diamond and silver to bring discipline in the sector as most portion of precious metals were not declared in the tax returns due to the informal way of acquiring of the items, tax officials said.
Most of the jewellers have acquired the precious metals either from smuggled market or general users without formal documents including sales invoice and tax payment, they said,
So, they could not show gold and other valuable metals in tax returns, they added.
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