National Board of Revenue on Thursday reduced the tax on gold import by Tk 1,000 per bhari (11.664 gram).
The revenue board cut the tax on gold imported by businesses, non-tourist passengers and international passengers (under baggage rules) to Tk 2,000 a bhori from Tk 3,000 a bhori.
Finance minister AHM Mustafa Kamal in his budget speech for financial year 2019-20 in the parliament said that the import tax on gold was reduced to prevent smuggling of the precious metal.
NBR officials said that international passenger would be allowed to bring gold bar weighed up to 234 gram by paying Tk 2,000 in tax on each 11.64 gram.
An international passenger can bring in 100 gram of gold ornaments 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.
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 to legalise gold.
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.
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