VAT on edible oil slashed to 5% to stabilise prices

Soybean oil

Dhaka, Nov 19 – The import-level value-added tax (VAT) on edible oil has been reduced from 10 percent to 5 percent to maintain a steady supply in the market.

The National Board of Revenue (NBR) issued a notification in this regard on Tuesday.

Earlier, the NBR had issued exemption notifications to boost the supply of rice, potatoes, onions, eggs, edible oil and sugar in the market.

On October 17, 2024, to keep oil prices within the purchasing power of the general public, a 15 percent tax exemption was allowed at the local production level, while a 5 percent VAT was imposed at the local business level on the supply of refined and unrefined soybean and palm oil.

As a result of this exemption, only a 5 percent VAT is currently applicable at the import level.

The NBR says that the removal of the said VAT will help maintain edible oil prices at a manageable level in the market, ensuring that consumers do not face increased costs.

This exemption on edible oil will remain effective till December 15, 2024. - UNB