The Bangladesh Jewellers Association (BAJUS) has officially introduced a new VAT-inclusive pricing system for gold ornaments, leading to a notable reduction in retail prices across the country.

Effective from 10 am this Thursday, the price for 22-carat gold ornaments has been set at BDT 232,930 per bhori.

This adjustment follows the government's proposal in the national budget for FY2026-27, which replaced the previous 5 percent value-added tax (VAT) with a fixed levy of BDT 2,500 per bhori.

Consequently, the price of 22-carat gold ornaments has decreased by BDT 9,013 per bhori compared to the previous system, where the price—inclusive of the 5 percent VAT—had reached BDT 241,943 per bhori based on the June 15 rate of BDT 230,422.

The decision was finalized during a meeting of the BAJUS Standing Committee on Pricing and Price Monitoring.

Under the new pricing structure, other categories of gold have also seen price drops:

21-carat gold: Set at BDT 222,491 per bhori, a decrease of BDT 8,491.

18-carat gold: Set at BDT 191,056 per bhori, a decrease of BDT 6,920.

Traditional-method gold: Set at BDT 156,064 per bhori, a decrease of BDT 5,170.

BAJUS confirmed that these new rates will remain effective at all jewellery shops nationwide until further notice. However, the association clarified that making charges will continue to vary based on the specific design of the ornaments.

Under this new system, because VAT is now embedded directly into the selling price, jewellers are strictly prohibited from collecting additional VAT from customers.

The association noted that this VAT-inclusive policy currently applies only to gold. The existing VAT system remains in place for silver, meaning customers must continue to pay an additional 5 percent VAT on top of the fixed prices for silver ornaments.

With the 5 percent VAT applied, the prices for silver are now:

22-carat silver: BDT 5,365 per bhori.

21-carat silver: BDT 5,132 per bhori.

18-carat silver: BDT 4,432 per bhori.

Traditional silver: BDT 3,324 per bhori.

BAJUS added that a further announcement regarding the specific VAT structure for silver ornaments is expected shortly.