Govt likely to restrict gold entry via baggage to once a year

The government is likely to revise baggage rules in the upcoming national budget, aiming to restrict how often passengers can bring gold into the country under the current duty-paid facility.

Currently, individuals can legally carry up to 117 grams or 10 bhori of gold multiple times a year by declaring it and paying a fixed tax of Tk40,000. 

Under the proposed change, this benefit may be limited to once a year per passenger.

Officials of the National Board of Revenue (NBR) presented these proposed tax-related changes to the chief adviser yesterday. The gold baggage issue was discussed in the meeting and received the green signal, according to an NBR official who was present.

In addition to the gold import restriction, the government is also planning to raise the tax-free income threshold for individuals—from the current Tk3.5 lakh to Tk3.75 lakh. 

Furthermore, listed companies in the stock market are expected to receive certain tax benefits, for which approval has also reportedly been granted.

Although commercial gold import is permitted, members of the Bangladesh Jewellers Association (Bajus) claim that importing gold under the baggage rules is cheaper. As a result, many individuals are using passengers as carriers to bring in gold, bypassing formal import channels.

There are also allegations that smugglers are exploiting this loophole, they said.

A deputy commissioner of customs at the Dhaka Customs House, speaking on condition of anonymity, said, "Some passengers are bringing in gold multiple times under the baggage rules and being used as carriers for bringing gold. In some cases, passengers travel abroad frequently and return with gold, and since there's no legal restriction, we can't stop them."

"We have proposed a revision to limit the use of baggage rules to once per year," he added. "This would encourage formal imports and help better track the gold supply chain."

Despite the government allowing commercial gold imports since 2018, the response has been minimal. In the four years following the policy change, only 145 kilograms of gold were imported through official channels – less than 1% of national demand, according to stakeholders.

In contrast, over 100 kilograms of gold are reportedly entering the country each day under the baggage rules. Since the method is not technically illegal, it has continued unchecked.

Under the baggage rules, female passengers can also bring up to 100 grams of gold ornaments duty-free.