The National Board of Revenue (NBR) has reduced Value Added Tax (VAT) on the import of refined and crude soybean and palm oil to keep stable the prices of edible oil.
Through two notices signed by NBR Chairman Md. Abdur Rahman disclosed the government decision to cut VAT on edible oil import.
In one notice, the NBR has waived 15 percent VAT at production and business levels on both refined and crude soybean and palm oil while in another notice, VAT on import of edible oil has been cut to 10 percent from 15 percent.
Earlier on October 15, Deputy Press Secretary to the Chief Advisor, Mohammad Abul Kalam Azad Majumder at briefing said that the government decided to lower the import duty on edible oil by 5 percent.
He also mentioned that the VAT imposed at the production and supply levels would also be waived.
On the same day, during a meeting at the Ministry of Commerce with Advisor Dr. Salehuddin Ahmed and representatives of edible oil traders, reduction in import duty on edible oils to existing 15 percent import to 10 percent proposed, along with a complete waiver of VAT at the production and business levels.
The Bangladesh Vegetable Oil Refiners Association has said such exemptions will help keep stable the current prices of edible oil.
The government's timely intervention through VAT reduction aims to mitigate the impact of global price fluctuations on the local market by ensuring affordability of edible oil for consumers, said NBR officials.
