The government has proposed to withdraw Value Added Tax (VAT) on import of gold to boost up the gold importation through the legal routes.
With his budget speech for FY2020-21, Finance Minister AHM Mustafa Kamal proposed to withdraw 15% VAT on the import of gold bars to discourage illegal import and encourage the import of gold on legal routes through authorized dealers.
Despite having a Gold Policy enacted in 2018, gold has not been imported legally into the country due to the existing high tax incidence, the finance minister observed.
“I hope this measure will boost up gold importation through the legal route, expand the local gold ornaments making industry and enhance VAT at the local stage,” he said.
