The Jewelry Association accuses the revenue board of bribery and demands policy changes to support the industry

B Mirror Desk:

The Bangladesh Jewelers Association (BAJUS) has accused the National Board of Revenue (NBR) of accepting bribes disguised as VAT collections. According to BAJUS, the NBR collected Tk 90 as a bribe under the cover of Tk 10 VAT. In a press conference held at the BAJUS office on Sunday, the organization called for the NBR to end this corrupt practice and urged them to reconsider their 15 demands before finalizing the fiscal year 2024-25 budget. The jewelers have threatened to shut down their businesses if their demands are not addressed.

Anwar Hossain, Chairman and Executive Member of the BAJUS Standing Committee on Tariff and Taxation, spoke at the press conference. Other notable attendees included BAJUS spokesman Dr. Dilip Kumar Roy, Advisor Ruhul Amin Russell, and Pawan Kumar Aggarwal, Member Secretary and Executive Member of the Standing Committee on Tariff and Taxation.

Anwar Hossain stated that despite submitting their budget proposal to the Finance Minister, the NBR Chairman has failed to fulfill their promises made in previous pre-budget meetings. He accused the NBR of using deceptive tactics against jewelers and not providing the necessary policy support to foster new industries in the jewelry sector. Hossain emphasized the need for the NBR to stop the practice of taking bribes under the pretext of VAT collection.

At the press conference, BAJUS reiterated their 15 demands, highlighting the reduction of the VAT rate on gold sales from five percent to three percent. They argued that this reduction could help the government collect approximately 1000 crore in revenue annually.

BAJUS reiterated their 15 demands, highlighting the reduction of the VAT rate on gold sales from five percent to three percent, which they argued could help the government collect approximately 1000 crore in revenue annually. They also called for the prompt distribution of EFD machines to all registered jewelry businesses and a reduction in customs duties on various forms of gold and diamonds. 

Specifically, they proposed reducing the customs duty on unrefined gold ore from five percent to one percent for IRC holders and VAT-compliant industries, and setting a five percent duty rate for partially refined gold. Additional demands included the abolition of existing taxes on gold waste and the introduction of a 10-year tax holiday for the gold refining industry. BAJUS also sought harmonization of tariff rates with neighboring countries, financial incentives for gold export, and rewards for law enforcement agencies to prevent smuggling. 

They also requested a 10-year tax holiday and customs duty exemption on machinery and raw materials for gold ornament manufacturing, tax exemption under Section 140 (3) (a) of the Income-tax Act, 2023, for individuals or organizations in the jewelry industry, and a limitation on tax-free gold ornaments for tourists to 50 grams instead of 100 grams.