When you walk into a jewellery shop in Dhaka, Chittagong, or any part of Bangladesh, you are quoted a price per Bhori. However, calculating the actual cost of buying gold is a source of confusion for many buyers. Between karat purities, making charges, and retail VAT, the final bill is always higher than the simple gold weight price. This guide walks you through how BAJUS rates are set, what Karat purity means, how to convert weights, and how the final jewellery price is calculated.
Understanding Gold Purity: 22K, 21K, 18K and Sanaton (Traditional)
Karat is the measure of gold purity out of 24 parts. 24K gold is 99.9% pure gold, but it is too soft to make durable jewellery. Therefore, gold is alloyed with other metals like copper and silver. Here is the purity breakdown according to BAJUS guidelines:
Gold Purity Levels and Standards (BAJUS)
| Karat | Purity Percentage | Purity Code | Typical Usage |
|---|---|---|---|
| 22K | 91.6% Pure Gold | 916 | Bridal jewellery and heavy ornaments |
| 21K | 87.5% Pure Gold | 875 | Daily wear jewellery, rings, and chains |
| 18K | 75.0% Pure Gold | 750 | Stone-set jewellery and diamond frames |
| Traditional | ~58.3% Pure Gold | Traditional / Sanaton | Vintage or legacy ornaments |
Traditional Weight Units: Bhori, Anna, Rati, and Points
In Bangladesh, gold weight is traditionally measured in Bhori (or Vori). If you buy smaller items like rings or earrings, jewellers will quote weights in Anna, Rati, or Points. The conversions are as follows:
- 1 Bhori (Vori) = 11.664 Grams
- 1 Bhori = 16 Anna
- 1 Anna = 6 Rati
- 1 Rati = 10 Points
- So, 1 Bhori = 96 Rati = 960 Points
Calculating Jewellers' Making Charges and VAT
When buying gold ornaments, you pay for the craftsmanship, known as making charges. BAJUS has set a minimum making charge of ৳3,000 to ৳6,000 per Bhori depending on the design complexity. Additionally, the National Board of Revenue (NBR) enforces a 5% retail VAT on the total cost (gold value + making charge).
Total Buying Price = (Gold Weight in Bhori × BAJUS Rate per Bhori + Making Charge) × 1.05
A Worked Example of Jewellery Calculation
- 1Say you are buying a chain weighing 1.5 Bhori of 22K Gold.
- 2Assume the current BAJUS 22K gold rate is ৳2,22,782 per Bhori: 1.5 × 222,782 = ৳3,34,173.00.
- 3Add making charge at ৳4,000 per Bhori: 1.5 × 4,000 = ৳6,000.00.
- 4Calculate the subtotal: ৳3,34,173 + ৳6,000 = ৳3,40,173.00.
- 5Apply 5% retail VAT: ৳3,40,173 × 0.05 = ৳17,008.65.
- 6Total buying cost: ৳3,40,173 + ৳17,008.65 = ৳3,57,181.65.
Tip
Use the CostNest Gold Price & Buying Cost Calculator to instantly calculate buying costs, convert grams to Bhori/Anna/Rati, and see exact VAT breakdowns.