Bangladesh Jewelers Association (BAJUS) has demanded reduction of VAT (value added tax) to 3 per cent for from the existing 5 per cent levied on the sale of gold, gold ornaments, silver or silver ornaments.
With the demand of VAT reduction, the BAJUS has made 14 demands to be reflected in the upcoming budget for the fiscal year 2024-25.
The organizations said with the reduction of VAT, jewelers will be able to sale more jewelry among the customers and the government will be able to earn revenue worth about Tk 1,000 crore from this sector.
This demands were made at the pre-budget press conference organized at BAJUS office at Bashundhara City Shopping Complex on Wednesday.
BAJUS General Secretary Badal Chandra Roy, BAJUS Advisor Ruhul Amin Russell, BAJUS Vice President Masudur Rahman, Chairman and Executive Member of BAJUS Standing Committee on Tariff and Taxation Anwar Hossain, Member Secretary and Executive Member of BAJUS Standing Committee on Tariff and Taxation were present at the press conference.
Pawan Kumar Aggarwal, Member Secretary of BAJUS Standing Committee on Research and Development Tasnim Naz Mona, Anwar Hossain, chairman and executive member of BAJUS Standing Committee on Tariff and Taxation presented the budget proposal of BAJUS in the press conference.
He said that the VAT rate imposed on the sale of gold, gold ornaments, silver or silver ornaments should be reduced from 5 per cent to 3 per cent in the case of jewelry business.
Currently, due to inflation and high price of US dollar, buying 11.664 grams (1 bharhi) of gold ornaments costs Tk 123,450 including VAT and wages. He said, In India 3 per cent VAT is levied on the sale of jewelry.
The jewelry industry of Bangladesh has immense potential. Jewelry industry can be a big sector of the government to collect revenue in the coming days. In this case, it is important to determine the VAT in a tolerable form for the buyers.
He also said that at different times, a large part of the upper classes go abroad to buy ornaments, that means they carry the countrys money goes abroad, depriving the government of the expected revenue.
