[🇧🇩] Jewelry Industry in Bangladesh

[Saif]

Source : https://thefinancialexpress.com.bd/trade/bajus-unhappy-over-imposition-of-higher-tax-vat-on-jewellery-in-proposed-budget

Bajus unhappy over imposition of higher tax, VAT on jewellery in proposed budget
Published :
Jun 09, 2024 21:30
Updated :
Jun 09, 2024 21:38

Jewellery traders on Sunday expressed dismay over the proposed national budget for FY2024-25, as it has failed to meet their expectations in encouraging the jewellery business in the country.

The 5 per cent VAT imposed on the sale of gold ornaments should be reduced to 3 per cent, they demanded. If implemented, Tk 10 billion of revenue will be collected from the jewellery sector, the jewellers said.

"The proposed budget has failed to meet the expectations of the jewellery industry. Although the NBR has repeatedly promised to address the problems and meet the demands of traders in the pre-budget meetings, there is no reflection of it in the proposed budget," said their association at a news conference in the city.

Bangladesh Jeweller's Association (Bajus) organised the conference and demanded their already proposed 15-point demand needs to be met in the proposed budget.

Bajus President Sayem Sobhan Anvir, Bajus General Secretary Badal Chandra Roy, Bajus spokesperson Dr Dilip Kumar Roy were present at the conference.

Although it has been repeatedly said that the manufacture and export of gold bars, coins and gold ornaments through legal channels will be encouraged, the import of raw materials and machinery related to this sector has been burdened with unequal duty rates, it said.

An unplanned source tax burden has been imposed on traders. The price of gold in our local market is always Tk 8-10 thousand higher than in the international market. One of the reasons for this is the unbearable duty rate on the import of raw materials and machinery.

Regarding the baggage rule in the proposed budget, Finance Minister Abul Hassan Mahmood Ali said, "In order to evade customs duty, passengers arriving from Middle Eastern countries bring gold ornaments with light designs on 24-carat jewellery. In that case, I am proposing to add the definition of gold ornaments in the case."

Bajus fully agrees with this statement of the finance minister, it said.

Currently, due to inflation and the dollar exchange rate, it costs around Tk 1,17,177 to buy 1 bhori of jewellery gold. Adding Bajus' fixed minimum wage of Tk 7,031 and 5 per cent VAT of Tk 6,210 brings the total price to Tk 1,30,418.

To read the rest of the news, please click on the link above.​

 

[Saif]

Challenges and export potentials of Jewelry industry in Bangladesh.

 

[Saif]

Jewellery industry still depends on informal sources

The jewellery industry has apparently remained largely dependent on unauthorised channels for sourcing gold although there is no direct government bar on importing the precious metal.

www.thedailystar.net

Jewelry industry still depends on informal sources

Star file photo

The jewellery industry in Bangladesh has apparently remained largely dependent on unauthorised channels for sourcing gold although there is no direct government bar on importing the precious metal.

Industry insiders said the taxes on legally importing gold were high, which was the main reason companies felt more comfortable sourcing gold from unauthorised channels.

Companies source gold by taking advantage of the National Board of Revenue's (NBR's) baggage rules and through other informal avenues, they added.

In 2018, the government framed a policy on gold to boost its import, prevent smuggling and ensure greater transparency in its trade.

A year later, Bangladesh Bank (BB) awarded licences to 18 companies and a bank to import gold.

Between 2020 and 2021, the banking regulator approved the import of 306.76 kilogrammes of gold bars to 12 companies, including Diamond World Ltd, LaxmiJewellers Ltd, BDEXgold and Rotno Gold Corner, showed central bank data.

But till now, eight of those companies have imported only 133.37 kg of gold bars despite the huge demand for gold in the local market.

Of them, Diamond World, one of largest jewellery companies, imported 63.5 kg, Riya Jewelers imported 30.45 kg, Aroosa Gold Corporation imported 14 kg, Jarwa House Pvt Ltd imported 11.66 kg and Golden World Jewelers imported 7.82 kg, showed the BB data.

The yearly demand for gold in the local market stood between 20 tonnes and 40 tonnes, according to Gold Policy-2018.

About 80 percent of the demand is still met by smuggled gold, as per industry insiders, causing huge revenue losses for the government every year.

The tax on gold import needs to be reduced, otherwise imports through legal channels will not increase, opined Dewan Aminul Islam Shahin, vice-president of Bangladesh Jeweller's Association (Bajus).

To read the rest of the news, please click on the link above.​

 

[Saif]

Exporting Gold, Jewellery: Bangladesh’s Shimmering Opportunity

In Bangladesh, the allure of gold transcends mere aesthetics; it is deeply embedded in the cultural fabric, serving as a symbol of prosperity, tradition and social status. For centuries, gold has held a revered position in Bangalee culture, woven intricately into traditions, weddings, festivals...

www.daily-sun.com

Exporting Gold, Jewellery: Bangladesh's Shimmering Opportunity
Publish: Friday, 16 February, 2024 00:00

M Munir Hossain

In Bangladesh, the allure of gold transcends mere aesthetics; it is deeply embedded in the cultural fabric, serving as a symbol of prosperity, tradition and social status. For centuries, gold has held a revered position in Bangalee culture, woven intricately into traditions, weddings, festivals and rituals. It symbolises not just wealth, but also purity and familial heritage, forming an integral part of people's lives and identities.

According to a report by the World Gold Council, Bangladesh boasts a long tradition of gold jewellery consumption, with an average annual demand of approximately 15 tonnes over the past decade. This consistent demand places Bangladesh among the top consumers of gold jewellery in South Asia.

Despite its cultural prominence, the jewellery sector in Bangladesh was historically considered informal. However, the proactive leadership of the Bangladesh Jewellers Samity (BAJUS) over the past few years has brought together some 40,000 jewellery traders under its umbrella, signalling a shift towards formalisation and global competitiveness of the industry.

Envisioning the future potential of the gold sector, one can draw parallels to the transformative journey of the ready-made garments (RMG) industry. With proper policy support and strategic investments, the gold industry has the potential to emerge as the country's leading foreign currency earner in the years to come. The ever-increasing global demand for gold and jewellery presents a promising opportunity for Bangladesh to position itself as a key player in the international market.

On the global stage, the demand for gold jewellery continues to soar, driven by the increasing affluence of emerging markets, particularly in Asia and the Middle East. The market size is projected to grow from 4.42 kilo tonnes in 2024 to 6.32 kilo tonnes by 2029, with a compound annual growth rate (CAGR) of 7.38%. Furthermore, the global jewellery market is anticipated to exceed $500 billion by 2030, presenting Bangladesh with significant opportunities for growth and expansion.

To read the rest of the news, please click on the link above.​

 

[Saif]

Prospect of gold sector in Bangladesh

Bangladesh is one of the countries in South and Southeast Asia which is traditionally known as producer of finest quality gold ornaments and jewelleries. The artisans of this industry have a long reputation as producers of the finest quality gold ornaments and jewellery. Though it is one of the...

businesspostbd.com

Prospect of gold sector in Bangladesh
M S Siddiqui
21 Dec 2022 00:02:44 | Update: 21 Dec 2022 00:02:44

Bangladesh is one of the countries in South and Southeast Asia which is traditionally known as producer of finest quality gold ornaments and jewelleries. The artisans of this industry have a long reputation as producers of the finest quality gold ornaments and jewellery. Though it is one of the oldest industries in the country. It has not developed to its desired potential because of certain limitations which involved the non-availability of gold to the business, financial support and a local market. As a result, the industry has not developed in the area of technology, production process, designing and innovation of jewelry products.

The major constrains faced by the jewelley industry in Bangladesh is the supply of gold which is banned from import until government formulate policy and issue The Gold Policy 2018 to allow import of gold under certain strict regulation. Until propagation of the policy, the industry was depending upon supply of gold from passengers of middle east under baggage rule and smuggling by professional smugglers since the independence. Bangladesh since its inception in 1971 has not imported any gold until recent time. Before independence, the State Bank of Pakistan established a quota for import of gold but that had been cancelled but industry was running since independence. On the other hand, gold smuggling in Bangladesh is at a record high with the country emerging as a major route into neighboring India.

While looking back to the history, in 1986, a study was undertaken at the initiative of Micro Industries Development Assistance Society (MIDAS) as a part of its scheme to help promote the growth of small industries sector in Bangladesh to determine the present status and the feasibility of exporting 'Gold Jewellery'. They have observed that the growth and development of gold jewellery have not much prospect in the local markets. However, opening of export channels in this sector may help the industry to grow as a result of caving a broader profitable market. The export trade in gold jewelleries will not only help to earn of valuable foreign exchange for the country but also would provide the security of jobs for the already employed 2-3 lakhs of artisans in this sector.

In April, 1981 a team comprising the officials of the Export Promotion Bureau and representatives of the local gold jewellery trade visited Dubai and Abu Dhabi in connection with Export Fair held there. It was felt by the team during their visit that there exists a demand for the kind of jewelleries that Bangladesh exhibited in the fair in the country concerned and that there exists a potential for exporting gold jewelleries in that market.

In 1985 Bangladesh Bank for the first time formulated a scheme outlining the guidelines and procedures for exporting gold jewelleries from Bangladesh titled as "Jewellery Export Scheme". The Export Policy for 1984-85 identified jewellery as one of the new export products for development. Unfortunately, those efforts could not develop the sector until the Gold Policy 2018 has been issued by the government. Bangladesh government issue the Gold Policy 2018 for import of finished gold in the form of gold bars and finished jewellery but not import of gold ore. Subsequently in 2021 amended the policy and allow import of unrefined and partially refined gold and gold ore.

To read the rest of the news, please click on the link above.
​

 

[Saif]

Indian businessmen keen to invest in Bangladesh’s jewellery industry

Leading Indian businessmen have expressed their interest to invest in setting up jewellery manufacturing factories in Bangladesh.

www.newagebd.net

Indian businessmen keen to invest in Bangladesh's jewelry industry

Bashundhara Group managing director and Bangladesh Jewelers' Association president Sayem Sobhan inaugurates the B2B summit 'Sonar Bangla' in Goa, India.

Leading Indian businessmen have expressed their interest to invest in setting up jewelry manufacturing factories in Bangladesh.

They have shown the interest after receiving a request from Bangladesh Jewelers' Association president Sayem Sobhan during an international expo held in India recently, said a press release.

Addressing the opening ceremony of the exposition, the BAJUS president said that Bangladesh has skilled goldsmiths while India has skilled designers, said a press release.

'The collaboration between the two neighbors will help boost the industry. The subcontinent will lead the global jewelry industry with joint efforts. None will be able to hinder the growth of the sector,' he said.

BAJUS in association with Indian company KNC Services Ltd organized the first-ever B2B summit styled 'Sonar Bangla' at five-star hotel The Leela in the Indian state of Goa.

Chief Mminister of Goa Pramod Sawant addressed the inaugural session virtually while Bashundhara Group director Sabrina Sobhan was on stage.

BAJUS vice-[resident and chairman of its Standing Committee on Foreign Trade and Market Development Badal Chandra Roy, Sonar Bangla Expo convener Hasmukh Parekh and KNC Services Ltd founder Kranti Nagvekar spoke on the occasion.

Sayem Sobhan Anvir along with the guests cut the ribbon at the entrance of the expo arena.

After the inaugural ceremony, Anvir held several bilateral meetings with top Indian businessmen in the jewellery sector.

During the meeting, Indian businessmen expressed their interest in investing in setting up jewellery factories in Bangladesh in response to the call of Sayem Sobhan Anvir.

They lauded Bangladeshi artisans and said Bangladesh has a reputation for handmade jewellery.

Taking advantage of this opportunity, Indian businessmen want to come forward with technical and technological support, the release added.

Speaking as the chief guest at the inaugural function, Sayem Sobhan said that India is far ahead of Bangladesh in the jewellery sector and Bangladesh is now trying to stand up.

'My request is that India, as our close friend and neighbour, will extend its hand of cooperation to Bangladesh. I invite Indian jewellery traders to set up manufacturing plants in Bangladesh. If Bangladesh and India work together, the business of both the countries will improve. As a result, we will be able to expand our business more than other countries in the world,'he said.

Making a call upon Indian businessmen, the BAJUS president said you should set up a factory jointly with the member organisation of Bangladesh Jewellers Association.

'Do not associate any jewellery trader who is not a BAJUS member with your business. There are many jewellery traders in Bangladesh who, without being a member of BAJUS, are tarnishing the reputation of this business, do not run any manufacturing factory jointly with them,' he said.

Sayem Sobhan Anvir further said that Bangladesh businessmen will participate spontaneously in response to your call whenever you organise a fair like Sonar Bangla.

'In the same way, when we organise such a fair, you must participate. We were impressed by KNC's hospitality. There was a kind of emotional feeling in KNC's hospitality that inspired us,' he added.

The BAJUS president ended his speech by thanking everyone sincerely. In a video message on the occasion, Goa chief minister Pramod Sawant appreciated BAJUS president Sayem Sobhan Anvir for coming to Goa.​

 

[Saif]

BD can tap huge potential of handcrafted gold jewellery, BAJUS seminar told

Bangladesh may tap the huge potential of handcrafted gold jewellery in the international market as there are many traditional jewellers in the country. This was observed at a seminar on the 'Potential, challenges and way forward for the jewellery industry' organised by the Bangladesh Jeweller's As

thefinancialexpress.com.bd

BD can tap huge potential of handcrafted gold jewelry, BAJUS seminar told
Published :
Feb 13, 2023 06:15
Updated :
Feb 13, 2023 06:15

Bangladesh may tap the huge potential of handcrafted gold jewellery in the international market as there are many traditional jewellers in the country.
This was observed at a seminar on the 'Potential, challenges and way forward for the jewelry industry' organized by the Bangladesh Jeweler's Association (BAJUS) at the International Convention City Bashundhara on the sideline of three-day jewelry fair, says a statement.

Industries Minister Nurul Majid Mahmud Humayun was present at the seminar as the chief guest while President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Jashim Uddin and BAJUS President Sayem Sobhan Anvir were present, among others.

According to a keynote presented on behalf of the BAJUS, unavailability of raw gold, lack of large investment, dependence solely on the local market are some of the key challenges to flourish in gold sector.

Besides, there has been no import of gold through legal channel since independence as there has been no proper policy in this regard in the country.

The BAJUS also said the handcrafted gold is a labor intensive industry and there is a significant value addition.

"Such jewelry is mostly crafted in India and Bangladesh. But Bangladesh cannot make a noteworthy contribution to the global market of handcrafted ornaments," the presentation said.

Local jewelers have goodwill for their craftsmanship, but they have to work for Indian companies as they get little scope to work in the domestic market, he said.

India earned $7.83 billion from the export of such jewelry in the year 2020.

Bangladesh lags much behind in terms of overall gold jewelry global market.

In his speech, FBCCI President Jashim Uddin said Bangladeshi gold jewelry has good demand in different countries like the USA, Canada and Middle East countries.

He added the smuggling of the yellow metal has been a major challenge for the sector.​

 

[Saif]

Bangladesh future model of global jewellery industry: Dilip Roy | banglanews24.com

Speakers at a programme in Faridpur on Saturday said under the leadership of Bangladesh Jewellers Samity (BAJUS) President Sayem Sobhan Anvir, Bangladesh will be a model of the global jewellery industry in the future. While addressing the Faridpur District Representatives’ Meeting-2022 of BAJUS...

www.banglanews24.com

Bangladesh future model of global jewellery industry: Dilip Roy
District Correspondent | banglanews24.com
Update: 2022-04-16 15:29:49

Speakers at a programme in Faridpur on Saturday said under the leadership of Bangladesh Jewelers Samity (BAJUS) President Sayem Sobhan Anvir, Bangladesh will be a model of the global jewelry industry in the future.

While addressing the Faridpur District Representatives' Meeting-2022 of BAJUS at Faridpur Press Club Hall Room, they hoped BAJUS will be the top business organisation in the country.

Former BAJUS President and Chairman of its District Monitoring Standing Committee Dr Dilip Kumar Roy was the chief guest at the programme with BAJUS of Faridpur district Convener Nanda Kumar Baral in the chair.

In his speech, Dilip Kumar Roy said, "Our main goal is to bring all the gold traders across the country under the banner of BAJUS. These representatives' meetings are being held at the divisional and district levels under the directions of the BAJUS president to unite all."

He also said, "Bangladesh will be a model in the global jewelry industry in the future. The new president of BAJUS, Sayem Sobhan Anvir's business insight, creativity and prudence will further enrich Bangladesh's jewellery industry. Thus, the jewelry industry will regain its lost past heritage in the near future."

"We all want to change the history of the jewellery industry together. Our new leadership Sayem Sobhan Anvir is planning to refine liquid gold and export it abroad. We'll all implement these plans together."

According to other speakers, gold traders will be able to trade in gold with their heads held high. 'Made in Bangladesh' will be inscribed on the gold bars and the gold bank will be set up in the country, they said, adding that no one will be able to claim the gold of the trader as stolen one.

Faridpur Municipality Mayor Amitabh Bose inaugurated the representatives' meeting organised by BAJUS of Faridpur district unit.

Among others, Ward-20 councilor of Faridpur municipality and panel mayor-2 Matiur Rahman Shamim, renowned gold traders Arun Kumar Dutta and Basudeb Karmakar, former general secretary of BAJUS Faridpur Sunil Chandra Karmakar, former convenor of BAJUS Faridpur Amal Chandra Karmokar, Kanaipur Jewellers Samity president Anand karmokar and Bhanga Thana general secretary M Nazrul Islam.​