Bangladesh Jewelers Association (BAJUS) alleged that the National Board of Revenue (NBR) takes Tk 90 bribe under the guise of collecting taka 10 VAT. Bajus has called upon NBR to come out of this culture.
At a post budget press conference in the city on Sunday it has placed a 15-point demand for consideration in the budget and said the trade body would shut business if their demands are not met Bajus leadrs warned.
It has demanded reducing VAT from five percent to three percent on sale of gold, gold ornaments, silver or silver ornaments.. If VAT is reduced the government will be able to collect about Tk1000 crore in revenue every year, Bajus leaders said adding EFD machines should also be installed at all registered jewelry shop as soon as possible.
Anwar Hossain, chairman and executive member of Bajus Standing Committee on Tariff and Taxation spoke on the occasion, other executive committee members were also present.
Anwar Hossain said they handed over Bajus budget proposals to finance minister in pre-budget meeting but these were not reflected in the budget. The NBR chairman promised to fulfill Bajus demands in pre-budget meeting but in reality he is bypassed jewelers demands.
He said that BAJUS is encouraging the development of new jewelry industry in the country but NBR is not coming forward with policy support; rather revenue officials are harassing the jewelry traders all over the country in the name of VAT collection.
Anwar Hossain demanded that NBR get out of the culture of accepting bribes of Tk 90 under the cover collecting 10 taka VAT. "We talk a lot, but we can talk anymore because of compulsion," he said.
"Our back is against the wall; this is why Im trying to tell the truth," he said. Bajus called for reconsideration of its 15 points demands, including reduction of VAT rate from five percent to three percent in the sale of gold, gold ornaments, silver or silver ornaments.
CD (customs duty) levied on unrefined gold ore will be reduced from five per cent import duty conditionally for IRC holders and VAT compliant industries through separate notification to be set at a concessional rate of one per cent for the jewelry sector.
For partially refined gold, instead of CD 10 per cent, the rate of duty for IRC holders and VAT compliant industries shall be reduced to 5 per cent.
Proposed duty rate CD (custom duty) for use of gold waste as raw material for gold refining industry to be reduced from five percent to one percent.
Along with this, the existing 15 percent VAT should be brought down to 5 percent and AIT (advance income tax) of 5 percent should be abolished.
Reduction of CD from 25 percent to two percent, SD reduced from 20 percent to nil, VAT to be reduced from 15 percent to five percent, to be reduced from five percent to three percent on rough diamonds imported by authorized traders for diamond cutting and processing purposes. Also Bajus has demanded abolishing five percent AIT and three percent RD.
The demands are manifolds including tax holiday for gold refining industry for 10 years with exemption from all types of customs duties on raw materials and machinery imported for the purpose of manufacturing gold ornaments.
