14,000 traders legalise 21,000 kgs of gold by deadline: NBR

Staff Correspondent | Published: 00:00, Jul 03,2019

 
 

A file photo shows visitors trying on ornaments at a stall at a gold fair in Dhaka. About 14,000 jewellers and gold traders legalised 21,000 kilograms or 18 lakh bhori (a bhori is equivalent to 11.664 grams) of gold and gold ornaments by the June 30 deadline for a legalisation scheme, according to provisional estimates of the National Board of Revenue.— New Age photo

About 14,000 jewellers and gold traders legalised 21,000 kilograms or 18 lakh bhori (a bhori is equivalent to 11.664 grams) of gold and gold ornaments by the June 30 deadline for a legalisation scheme, according to provisional estimates of the National Board of Revenue.

Officials of the revenue board said that the jewellers and traders legalised gold, diamond and silver through making declaration and paying specific amount of taxes to income tax authorities under the special scheme.

The NBR received around Tk 183 crore in taxes from the jewellers and gold traders in exchange of declaring the stocks of gold and other precious metals legal.

Officials said that undisclosed gold, diamond and silver still remained in possession of jewellers and gold traders became illegal after the deadline.

Jewellers and gold traders will have to pay taxes at regular rates on prices of gold, gold ornaments, diamond and silver if they want to show the precious metals in their income tax returns, officials added.

According to the NBR data, jewellers and traders paid about Tk 180 crore in taxes for legalisation of gold by paying Tk 1,000 for each bhori of gold and the rest amount of the taxes came from legalisation of diamond and silver.

The tax rate was Tk 6,000 for cut and polished diamond and Tk 50 per bhori of silver.

Of the Tk 180 crore, jewellers from Dhaka alone paid Tk 116 crore in taxes.

Earlier, on May 23, income tax wing of the NBR issued a gazette notification offering an opportunity to jewellers and other gold traders for legalising their undisclosed stocks of gold and other precious metals in their possession by June 30 by paying the specific amount of taxes.

The NBR offered the scope to bring discipline in jewellery business suspecting that the business was run with undisclosed gold as most of the jewellers acquired the precious metal either from illegal market or general users without formal documents including sales invoice and tax payments.

The tax authorities also organised a three-day gold fair in eight divisional cities across the country in June 23-25 to facilitate declaration of their stocks by traders.

NBR member (income tax policy) Kanon Kumar Roy on Tuesday told New Age that the total amount of taxes and gold legalised by traders would be slightly higher once they would get the complete data from across the country.

Some income tax circles located in remote areas are yet to complete their calculation, he said.

NBR officials said that the scope would bring discipline to the sector and they would also get taxes at higher amount in coming years due to a rise in legal transaction in the sector.

Jewellers used to hide their actual income from the business as tax officials could neither detect their concealment of income nor assume about the actual sales due to an absence of inventory of gold and other precious metals of traders, they said.

Now, traders will not be able to conceal transaction or declare doubtfully low transactions despite having hefty stocks of precious metals, they said.

Tax officials will have the scope for scrutinising their transactions if they suspect that traders have showed income at lower rate, they added.

Tax officials are also empowered to search and seize undisclosed gold, bullion and jewellery for concealment in income tax returns.

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