The VAT waiver facility for imports of refined and unrefined soybeans and palm oil has been extended till December 31. The National Board of Revenue (NBR) extended the VAT concession to control the price of edible oil on Thursday (October 6).
A separate order signed by NBR Chairman Abu Hena Md Rahmatul Munim issued the SRO in this regard on Thursday.
Earlier, the existing VAT exemption facility for import of refined and unrefined soybean and palm oil to control the price of edible oil expired on September 30.
A source said that this decision was taken by the NBR in view of the demands of the traders and on the recommendation of the Ministry of Commerce. A notification issued by the NBR on March 16 reduced the value added tax (VAT) leviable on refined and crude soybean and palm oil and other refined palm oils from 15 percent to 5 percent.
Earlier on March 14, NBR had issued a notification waiving VAT on edible oil at local production and trade level.
According to the order, a total of 20 percent VAT was withdrawn on refined soybean and palm oil. Then on June 30, to control the price of edible oil, the period of VAT facility at the level of import of refined and unrefined soybean and palm oil was extended by three months to September 30.
According to the Ministry of Commerce, currently the country’s annual demand is 2 million tonnes of edible oil. Of this, 2 lakh tonnes are procured locally. The remaining 18 lakh tonnes are imported.
