File Photo
The government has reduced the value-added tax (VAT) on some edible oils, including soybean oil, to keep the prices of edible oils at a bearable level in the domestic market. At the same time, the tax rate at the import level has been reduced significantly.
On Monday (December 16, 2024), the National Board of Revenue (NBR) said in a notification that three notifications in this regard were issued on December 15. It stated that VAT has been completely withdrawn at the local level on the sale of soybean, palm, sunflower, and canola oil, which will be effective until March 31, 2025.
In addition, the 15 percent VAT has been reduced to 5 percent at the import level of these products. As a result, there is no duty or tax left on edible oils.
The notification mentioned that the VAT and duty reduction notifications issued earlier on October 17 and November 19 were valid until December 15. This time, sunflower and canola oil have also been included under the new notification, along with soybean and palm oil. The decision has been taken to keep the edible oil market stable and prices affordable for consumers ahead of the month of Ramadan.
Customs duty, regulatory duty, advance tax (AT), and advance income tax have been completely withdrawn on the import of sunflower and canola oil. According to NBR data, the reduction in VAT and customs duty could reduce the import cost of these oils by up to Tk 40-50 per liter.
The National Board of Revenue (NBR) hopes that this initiative will increase the supply of edible oil in the market and as a result, the prices of the product will be affordable for consumers. This step, taken in view of the demand during the month of Ramadan, is expected to play an important role in countering the impact of the recent price hike in the international market of edible oil.
Source: Online/OFA
Comment Now