Gold ornaments to cost less under new tax structure
The government has proposed a new initiative in the budget to reduce the tax burden on gold jewellery purchases, as gold prices have remained high for over a year.
According to the proposal, a fixed VAT of Tk 2,500 per bhori (11.664 grams) has been proposed on gold jewellery. Additionally, the source tax on the supply of gold ornaments has been proposed to be reduced from 5 per cent to 0.5 per cent.
Currently, a 5 per cent value-added tax (VAT) is imposed on the total selling price of gold and gold jewellery. A bhori of 22-carat gold jewellery currently costs Tk 2,18,350. Under the new proposal, the VAT would be Tk 2,500, whereas previously the VAT amount was over Tk 10,000.

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