Withdrawal of VAT on edible oil imports this week

 This week, the country may announce the withdrawal of 15 percent value-added tax (VAT) on edible oil imports. The VAT department of the National Board of Revenue (NBR) is working on this.

Soybean oil prices have already risen in the market and with the holy month of Ramadan approaching, VAT may have to be withdrawn to keep the market stable. The Commerce Ministry has recently written to the NBR recommending repeal of VAT.

At present, 15 percent VAT is levied on import and production or business. Traders have demanded the withdrawal of VAT in both phases.

The VAT department of the NBR is now analyzing the request of the Ministry of Commerce. At present, 15 percent VAT is levied on import and production or business. Traders have demanded the withdrawal of VAT in both phases. According to the responsible sources of NBR, VAT may be reduced at the import and production stage.

When asked, a senior official of the VAT department told Prothom Alo that the proposal to withdraw VAT is being actively considered. A proposal in this regard will be sent soon. If approved, notification will be issued. 

Soybean oil prices have been rising in the country's market for several weeks. At present, one liter is being sold at Tk 18, two-liter at Tk 235-345, and five-liter at Tk 800. There is also a crisis of edible oil in the market. The Ministry of Commerce has discussed this with the traders last week. In that discussion, the Ministry of Commerce, however, rejected the proposal of the traders to increase the price of edible oil.

Leaders of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the apex body of traders, met with importers and local traders on Monday to discuss ways to keep soybean oil prices stable. At the meeting, they demanded the withdrawal of duty on edible oil for the next three months.

A 30 percent regulatory duty was imposed on sugar imports. In October last year, it was reduced to 20 percent. The duty was waived till February 28.

Meanwhile, on the occasion of the month of Ramadan, the reduction in the regulatory duty has been continued to keep the price of sugar stable. A 30 percent regulatory duty was imposed on sugar imports. In October last year, it was reduced to 20 percent. The duty was waived till February 28. However, in a new order, the NBR has extended the exemption on sugar imports. In other words, the NBR has maintained 20 percent regulatory duty on sugar imports for another two and a half months.