Capital gains tax on gold, digital currencies from next year

From the next fiscal year, a 15 percent capital gains tax may apply when selling gold, jewellery, digital currencies, or club memberships.

Finance Minister Amir Khosru Mahmud Chowdhury proposed the measure in the Finance Bill 2026 while presenting the national budget for the fiscal year 2026-27 in parliament on Thursday.

Under the proposal, profits from selling or transferring gold, silver, jewellery, precious stones, diamonds, coins, digital currencies, artworks, antiques, and club memberships declared in a taxpayer’s return will be treated as capital gains and taxed at 15 percent.

Capital gains from securities will also be taxed at 15 percent, including treasury bills, bonds, savings instruments, debentures, sukuk and other shariah-based securities, as well as shares or stocks issued by companies and other entities.

The government has proposed the tax on gold and jewellery at a time when prices have risen sharply in recent years.

Gold was priced at Tk 1.72 lakh per bhori on June 5, 2025. It then rose steadily to Tk 2.24 lakh per bhori on June 13, 2026. Earlier, on January 29 this year, it had reached Tk 2.86 lakh per bhori, the highest level in Bangladesh’s history.

After falling four times in a row, gold prices in the domestic market rose again yesterday, driven by higher international prices of pure gold, prompting the Bangladesh Jewellers Association to adjust local rates.

Yesterday, the price of 22-carat gold increased by Tk 6,590 per bhori, bringing it to Tk 224,940 per bhori.

Industry insiders fear the new tax may discourage formal transactions, encourage asset concealment, and create difficulties for people needing to sell gold during financial emergencies.

INDUSTRY OPPOSITION

Enamul Haque Khan, president of the Bangladesh Jewellers’ Association, has called the proposed capital gains tax on gold “illogical and unacceptable” for the industry.

“We are already preparing a response and will announce a protest programme seeking its withdrawal,” he said.

He argued that gold should not be treated like a regular financial asset for taxation, saying, “Gold is usually kept as gold, not converted into cash. Globally, it is measured by weight, not value.”

Khan warned that traders may become reluctant to sell gold if the tax is imposed.

Comparing the proposal with VAT, he said that while VAT compliance has improved over time, adding or replacing taxes with a capital gains tax would not bring major benefits and would instead make the tax system more complicated.

He also said the measure could discourage formal transactions, reduce transparency, and create unintended effects in the gold market.

Using a train analogy, he said the sector must work as a single system, adding, “All parts need to function together. If policies are applied partially, the system will not run smoothly.”

INCENTIVES FOR THE JEWELLERY SECTOR

Despite the proposed tax, the jewellery sector has also received budget incentives expected to support business growth.

The finance minister has proposed replacing the existing 5 percent VAT with a fixed VAT of Tk 2,500 per bhori of gold.

The government has also proposed reducing the tax deducted at source on purchases of gold, silver, jewellery, precious stones, diamonds and platinum from 5 percent to 0.5 percent.

Under this proposal, any individual or business buying these items will have to deduct 0.5 percent tax at source from the seller at the time of purchase.

However, Khan said these incentives would have little impact if the government proceeds with the 15 percent capital gains tax.

NBR DEFENDS PROPOSAL

Officials of the National Board of Revenue have rejected the industry’s criticism, with a senior official saying, “We have included the provision in line with global standards.”

On club memberships, the official said the rule would apply to registered clubs mainly used by higher-income groups.

The finance minister has also proposed a 10 percent tax deducted at source on fees for joining, renewing, transferring or changing club memberships.