Govt drafts revised gold policy

The government has drafted a revised national gold policy to bring the country’s gold sector under a formal, regulated and accountable framework, aiming to increase transparency, legal trade, exports and government revenue.

Commerce Minister Khandakar Abdul Muktadir yesterday asked all relevant government agencies and stakeholders to submit written feedback on the draft “Gold Policy 2018 (Revised) 2026” by Sunday, August 9, according to a press release.

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He gave the instruction at a meeting on the draft policy at the Secretariat in Dhaka.

The meeting, chaired by Commerce Secretary Md Ataur Rahman Khan, was attended by Enamul Haque Khan, president of the Bangladesh Jewellers Association (Bajus), Mohammad Hasan Arif, vice-chairman of the Export Promotion Bureau, and representatives from the National Board of Revenue, Bangladesh Bank, other government agencies and the gold sector.

The minister said the gold sector has long played an important role in the economy but has remained largely outside a formal institutional framework because of inadequate policies, regulations and weak oversight.

“We need to change our mindset. It is not right for a recognised business sector to remain outside a formal framework for so long,” he said.

“We now want to bring the sector under a legal and institutional framework.”

According to the minister, formalising the sector would create jobs, increase legal gold imports, raise government revenue and improve transparency in gold stocks and transactions. He said every stage of purchasing, selling and storing legally imported gold should be properly documented.

Muktadir added that gold held legally within the country helps preserve national wealth, similar to foreign exchange reserves.

To reduce gold smuggling, he said the gap between domestic and international gold prices should be kept reasonable. Duties and taxes should take into account international prices, especially in major trading hubs such as Dubai, he added.

The minister said the revised policy also aims to develop a gold jewellery manufacturing and export industry by allowing raw materials to be imported at lower duty rates, helping local manufacturers compete in global markets through value addition.

He also stressed the need to balance the country’s strong demand for gold with the purchasing power of ordinary consumers.

Before finalising the policy, the government will review the gold policies and regulatory systems of three or four gold-exporting countries, including India. It will compare their import systems, tariff structures, stock management, export facilities and monitoring methods.

The minister asked all agencies to submit written observations on possible implementation challenges by August 9. He said another meeting would be held, if necessary, after reviewing stakeholders’ feedback before the policy is finalised.