Economic Reporter :
Bangladesh Jewellers’ Association (BJS) has called for a reduction in VAT, saying the high tax rate coupled with import duty was making their products uncompetitive.
Leaders of the association have even threatened with an indefinite strike as of Jun 4 if their demand is not met.
The National Revenue Board in July last year increased the VAT to five prevent from three percent.
BJS General Secretary Enamul Haque pointed out at a press conference at the National Press Club on Tuesday that VAT was just one percent in India and Dubai had none at all, while it was five percent in Bangladesh.
As a result, 90 percent of gold buyers were purchasing gold from those countries, he claimed.
He said a steep rise in international gold and silver prices had badly affected this sector and VAT only added to the burden. “This industry will be in ruins if VAT were to remain for another two to three years.”
The BJS leaders anticipate a 15 percent VAT in the coming budget and are worried about its impact. “Jewellers will never accept a 15 percent VAT the government might impose in the coming financial year,” said Haque.
He demanded a reduction in VAT from the five per cent to one percent and a cut in import duty, besides a sustainable guideline for the industry.
BJS also plans to hold human chains in front of district collector and upazila executive officers’ offices across the country on Jun 5 as part of its agitation.
Bangladesh Jewellers’ Association (BJS) has called for a reduction in VAT, saying the high tax rate coupled with import duty was making their products uncompetitive.
Leaders of the association have even threatened with an indefinite strike as of Jun 4 if their demand is not met.
The National Revenue Board in July last year increased the VAT to five prevent from three percent.
BJS General Secretary Enamul Haque pointed out at a press conference at the National Press Club on Tuesday that VAT was just one percent in India and Dubai had none at all, while it was five percent in Bangladesh.
As a result, 90 percent of gold buyers were purchasing gold from those countries, he claimed.
He said a steep rise in international gold and silver prices had badly affected this sector and VAT only added to the burden. “This industry will be in ruins if VAT were to remain for another two to three years.”
The BJS leaders anticipate a 15 percent VAT in the coming budget and are worried about its impact. “Jewellers will never accept a 15 percent VAT the government might impose in the coming financial year,” said Haque.
He demanded a reduction in VAT from the five per cent to one percent and a cut in import duty, besides a sustainable guideline for the industry.
BJS also plans to hold human chains in front of district collector and upazila executive officers’ offices across the country on Jun 5 as part of its agitation.
