The government has taken an initiative to formulate a gold import policy to check smuggling of the commodity and help boost duty collection from the sector.
To this end, the government has formed a nine-member committee for formulating the policy, as per a UNB report.
As per the proposed policy, the VAT registered entities will only be allowed to import gold through opening Letters of Credit (LCs).
"If everything goes well, the Finance Minister will make an announcement about the policy in the upcoming national budget for the 2018-19 fiscal years," told a senior official of the ministry to the agency.
"The gold import policy will be finalised after reviewing the recommendations of the committee," he added.
Finance Minister AMA Muhith in his budget speech for 2017-18 fiscal said due to the absence of a hard and fast rule for the import of gold, the jewellery sector is not flourishing.
“So, the association of this sector has made various proposals in order to formulate a realistic guideline for the import of gold and make the industry a business-friendly one," he said.
Muhith said the government has decided to prepare a time-befitting policy for gold import after discussions with relevant agencies.
According to sources, the committee is now examining the proposals from the associations of jewellery sector of the country and it will be finalised before the budget.
The committee said the specific duty on the import of gold bars might be scrapped, if necessary, after the full implementation of the new VAT and Supplementary Duty Act.
According to a paper prepared by the committee, the import of gold and silver will be done as per the regular import system, not by the baggage rule or the clearance certificate from the central bank.
It says the import of gold and silver will be done only by LC, and the VAT registered entities will get the scope.
As per the existing law, anyone can import gold or silver. The VAT registered entities can import gold through LC giving four per cent duty over the total price to the government exchequer.
Besides, anyone can import gold or silver fulfilling the Foreign Exchange Regulation Act 1947.
