Gold imports through official channels in Bangladesh remain low despite the existence of a specific policy and reduced duties, National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan said on Wednesday.
He made the remarks at a “Meet the Business” programme held at the NBR building, attended by members of the Bangladesh Jewellers Association.
The NBR chairman said that although a substantial volume of gold is available in the domestic market, much of it enters the country through unofficial routes, posing a major challenge to financial discipline and good governance.
Citing Singapore as an example, Abdur Rahman said the country had advanced by establishing the rule of law from the outset, an area where Bangladesh still lags behind.
During the discussion, representatives of the jewellery sector demanded a revision of the existing 5 percent value-added tax (VAT) imposed at the sales stage.
In response, the NBR chairman said that instead of levying VAT on the total value of gold, it would be more reasonable to impose a 15 percent VAT on value addition or making charges only.
He added that if a suitable mechanism or formula could be developed, the proposal might be considered in the upcoming national budget.
The meeting also highlighted differences of opinion over the existing 1 percent minimum turnover tax. Abdur Rahman said he personally opposed assessing income tax based on turnover, but noted that the practice persists due to longstanding mistrust between taxpayers and tax officials.
He assured that the existing 5 percent withholding tax on gold supply would be reviewed.
The NBR chairman further said the government plans to develop dedicated software or systems to ease the accounting burden on small businesses, enabling shop owners to maintain accurate transaction records and gradually eliminate the need for turnover-based taxation.
Calling for an end to “double standards,” he said many businesses report higher profits when seeking bank loans but declare losses or minimal profits for tax purposes.
He also urged chartered accountants to conduct audits responsibly, ensuring that no errors or fabricated figures or “cooked” accounts are presented.
At the meeting, Abdur Rahman reiterated that duty drawback facilities on import duties paid for raw materials used in gold exports are a fundamental right and expressed a positive stance on implementing the facility.
He said that while the authority to issue gold import licences rests with Bangladesh Bank, the NBR would hold discussions with the central bank on the issue.
“We believe that the more competition there is in the market, the more discipline will be restored,” he said.
The NBR chairman added that tax revenues belong to the country’s 180 million people and encouraged businesses to submit their concerns in writing so that comprehensive and sustainable solutions can be worked out.
