VAT cut on gold, silver jewelleries demanded

The Bangladesh Jewellers’ Society (Bajews) has demanded that value added tax (VAT) on gold and silver jewelleries be reduced to 1.5 percent from the 5 percent proposed in the budget for next fiscal.

Staff Correspondentbdnews24.com
Published : 27 June 2015, 03:49 PM
Updated : 27 June 2015, 03:49 PM

Bajews General Secretary Enamul Haque Khan made this demand on Saturday at a press conference held at the National Press Club.
 
He said the nation’s jewellery crafts industry was under threat due to increased international market prices and lower VAT rates in India.
 
The budget for FY 2015-16 presented on Jun 4 in Parliament proposed to increase VAT to 5 percent from the existing 3 percent on gold and silver jewelleries.
 
“The continuous unabated increase in price of gold and silver in the international market for the past 5 years along with economic downturn has had a negative impact on the jewellery industry.
 
Consumers are buying less due to increase in price,” Enamul Haque said in a press release. 
 
“Our neighbouring country India’s VAT rate of 1 percent and easy visa process will encourage our consumers to purchase jewellery from there
 
“As per the proposed VAT rate, a consumer in our country will have to pay Tk 50,000 as VAT for the purchase of jewellery worth TK 1million. Whereas in India, the VAT will be just Tk 10,000,” Haque told the media briefing.
 
The increase in VAT last year also had a negative impact on the industry, said the business leader.
 
“To save the jewellery industry, Bangladesh needs to keep VAT rates between 1 to 1.5 percent, which will encourage our consumers to pay VAT and protect the local industry.”