Staff Correspondent, Narayanganj

For the past three months, a VAT office team has been conducting a survey on gold shops in Narayanganj. Once the survey is completed, a list will be issued by the government, and machines will be installed accordingly. There will be no room for objections. However, jewelry shop owners in Narayanganj have expressed strong opposition.

Although they have not announced any protest programs, the jewelry shop owners in the industrial city of Narayanganj have demanded the removal of VAT discrimination. The gold traders argue that the majority of gold traders in Narayanganj do not pay VAT or taxes to the government. Among the 100 shop owners who do pay VAT and taxes, their concerns are not being considered by the VAT officials. Instead, VAT machines (EFDs) are being installed across Narayanganj indiscriminately, causing losses for them.

Meanwhile, Shamima Akhter, Office Superintendent of Narayanganj District Customs, Excise, and VAT Office, stated that so far, 300 EFD machines have been installed in various business establishments in the district. A survey is currently underway for jewelry establishments. Once the survey is completed, EFD machines will be installed in all the listed businesses. At least 200 machines are expected to be installed in Narayanganj's jewelry stores.

The National Board of Revenue (NBR) has decided to install VAT machines, or Electronic Fiscal Devices (EFDs), in gold shops across 18 districts, including Narayanganj. To increase revenue collection, the NBR has requested a list of jewelry businesses from the Jewelers' Association.

However, business leaders from the Bangladesh Jewelers Association (BAJUS) believe that all stores should be brought under VAT regulations before installing VAT machines. If necessary, they suggest working on the ground level to ensure compliance.

At the beginning of the year (on January 22), Mohammad Hanif Uddin Selim, President of the Narayanganj District Committee of BAJUS, expressed his views on installing VAT machines to journalists.

He stated, “In Narayanganj alone, fewer than 100 businesses can be found that pay VAT and other licensing fees to the government. However, there are over 500 gold shops in total. Before installing these VAT machines, we suggested that all stores should first be brought under VAT regulations. This would have been fair to everyone.

Instead, the VAT machines are being imposed on those who are already paying VAT, creating discrimination between different business groups. Those under the VAT system pay VAT along with five other types of fees, while those who do not pay fees can sell gold at a price 10,000 BDT lower per ‘bhori’ and still make more profit.

That is why we have urged that before installing the VAT machines, authorities should ensure that all stores in every district comply with VAT regulations. Then, the implementation of VAT machines would be fair. We support all government decisions that are beneficial to businesses.”

Notably, at the beginning of January, NBR held discussions with leaders of the Jewelers Association regarding EFD installation. During the meeting, the association leaders raised concerns about VAT in the jewelry sector, baggage rules, gold imports, and other issues.

In that meeting, NBR officials announced that EFD machines would be installed in jewelry shops across Dhaka, Narayanganj, Narsingdi, Munshiganj, Manikganj, Savar, Gazipur, Mymensingh, Netrokona, Kishoreganj, Sherpur, Tangail, Jamalpur, Chattogram, Cox’s Bazar, Bandarban, Khagrachari, and Rangamati. NBR also requested a full list of businesses for the installation process. If providing the full list at once was not possible, they requested that it be provided in phases.