The price of gold may decline as Finance Minister AHM Mustafa Kamal on Thursday proposed to withdraw the existing 15 per cent VAT on the import of gold bar.
In his budget speech at the parliament, Mr Kamal said the proposal to withdraw the VAT will discourage illegal import and encourage the import of gold on legal routes through authorised dealers.
“Despite the Gold Policy 2018, gold has not been imported legally into the country due to the existing high tax incidence. I propose to withdraw 15 per cent VAT on the import of gold bar to discourage illegal import and encourage the import on legal routes through authorised dealers”, he said.
This measure will boost up gold import through the legal route, expand the local gold ornament making industry and enhance VAT at the local stage, the finance minister hoped.
