The jewelry industry in Bangladesh heavily relies on unauthorized sources for gold, despite the absence of a direct government ban on gold imports. High taxes on legally importing gold have prompted companies to prefer unregulated channels. They utilize the National Board of Revenue’s (NBR) baggage rules and informal avenues to source gold. In 2018, the government established a gold policy to encourage legal import, prevent smuggling, and enhance transparency. However, despite Bangladesh Bank awarding licenses to 18 companies and a bank to import gold, only 133.37 kg of gold bars have been imported by eight of these entities out of a yearly demand that ranges from 20 to 40 tonnes.
Among them, Diamond World, one of the largest jewelry companies, brought in 63.5 kilograms, Riya Jewelers imported 30.45 kilograms, Aroosa Gold Corporation imported 14 kilograms, Jarwa House Pvt Ltd imported 11.66 kilograms, and Golden World Jewelers imported 7.82 kilograms, as indicated by data from the Bangladesh Bank.
Approximately 80% of the demand is still met by smuggled gold, leading to substantial revenue losses. To address this, industry insiders suggest reducing the high taxes on gold imports and implementing stricter measures against smuggling.
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