The Finance and Planning Minister Amir Khosru Mahmud Chowdhury has proposed to reduce the source tax and Value Added Tax (VAT) on gold and gold ornaments in the proposed national budget for the fiscal year 2026-27.
He made the proposal while placing the national budget for FY 2026-27 in the Jatiya Sangsad today (11 June).
In his budget speech, the Finance Minister noted that the supply of gold and gold ornaments has largely remained informal due to high source tax rates, resulting in a loss of government revenue.
“To bring this business into the formal sector and boost government revenue collection, the source tax on the supply of gold and gold ornaments has been slashed from 5% to just 0.5%,” he said.
Under the title ‘Formulation of Specific VAT Provisions for the Jewellery Sector’ in the seventh chapter, the Finance Minister stated, “I propose to set a specific VAT of Tk 2,500 per bhori instead of the existing 5% VAT against jewellery services.”
Gold traders have long been demanding a reduction in source tax and a simplification of the VAT structure.
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