The National Board of Revenue (NBR) is planning to reduce the Value Added Tax (VAT) on gold from the current 5% of the total selling price to a fixed Tk 2,500 per bhori, representing a 78.5% decrease. This change is expected to be implemented in the 2026-27 fiscal year budget. The current market price for 22-carat gold is approximately Tk 229,000 per bhori, resulting in a VAT of around Tk 11,500 per bhori. The new fixed VAT will significantly lower this amount to Tk 2,500 per bhori.
An NBR official, speaking on condition of anonymity, mentioned that the current VAT collection from this sector is less than Tk 150 crore. With the introduction of the fixed VAT, the collection is expected to rise to around Tk 400 crore. The Bangladesh Jewellers Samity (BAJUs) has supported this move, anticipating that more jewelry businesses will register for VAT, expanding the VAT net.
Initially, the proposal was to set the fixed VAT at Tk 5,000 per bhori, but following demands from gold traders, it was reduced to Tk 2,500. The source also noted that the source tax on gold and jewelry supply will be reduced from 5% to 0.5%. In the 2024-25 fiscal year, VAT collection from gold transactions amounted to Tk 138 crore. Currently, there are approximately 40,000 jewelry shops in the country, with around 8,000 registered for VAT, of which 1,500 regularly pay VAT.
