Traders will be allowed to legalize their illegal gold for Tk1,000 per bhori
Following the government’s offer to legalize undeclared gold, traders are organizing a fair for jewellers to clear their stock of the precious yellow metal.
The three-day fair at Dhaka’s Hotel InterContinental between June 23-25, will however not be open to the public, Bangladesh Jewellers’ Association (Bajus) General Secretary Dilip Kumar Agarwala confirmed.
He said: “The gold trade is finally being recognized after a long time, which prompted us to organize the ‘gold fair’ in cooperation with the NBR (National Board of Revenue), which will basically encourage traders to legalize their stocks.”
The annual demand for gold in Bangladesh is between 20-40 tonnes. Almost 80% of this demand is met with smuggled gold, as traders face difficulties importing the precious metal due to complex procedures in accordance with Gold Policy 2018, which was cleared by the government in October, 2018.
In a notification in May 28, 2019, the NBR said that if any trader wants to disclose their undeclared stock of gold, they will have to pay Tk1,000 per bhori (11.664 grams).
In the case of cut and polished diamonds, the tax will be Tk6,000 per carat.
The authorities also fixed the tax for silver at Tk50 per bhori.
The offer will stay valid until Jun 30, 2019.
Tax benefits will be given to traders only when they fulfil certain terms and conditions.
The NBR, in a notice said, traders will have to maintain inventories of declared gold, silver, and diamonds on separate books.
Sales from the inventories should also be recorded in separate books.
Traders will have to submit these books with their income tax returns.