SANGSAD BHABAN, June 11, 2026 (BSS) - A proposal has been made 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.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury made the proposal 
while placing the national budget for FY 2026-27 in the Jatiya Sangsad today.

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 percent to just 0.5 percent," 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 Taka 2,500 per bhori instead of the existing 5 percent 
VAT against jewellery services."

Gold traders have long been demanding a reduction in source tax and a 
simplification of the VAT structure.