Business Report :
The government is likely to reduce value-added tax (VAT) on imports, processing and trading of soybean and palm oil to contain the prices of the essential, the commerce ministry said in a statement.
At a meeting chaired by Finance and Commerce Adviser Salehuddin Ahmed on Tuesday, the Bangladesh Trade and Tariff Commission recommended reducing VAT on imports of crude soybean oil and unrefined palm oil to 10 percent from the existing 15 percent.
It also suggested complete removal of the VAT at the production and trading stage of the edible oil. A plan is also there to request the NBR to reduce the VAT, according to the statement.
The NBR will later take decision in this regard, said the ministry.
The decision was taken as prices of soybean and palm oil soared in the international market over the last several months.
Edible oil traders on Tuesday proposed waiving the existing 5.0 per cent import duty on soybean and palm oil and removing all value-added taxes (VAT) imposed on producers and traders.
The last price adjustment for soybean and palm oil took place on April 18, 2024. In recent months, the global market has witnessed a consistent rise in prices for these oils.
The price of crude soybean oil increased by 14.8 per cent, while refined, bleached, and deodorized (RBD) palm oil surged by 18.68 per cent, according to Commerce Ministry.
According to the Bangladesh Vegetable Oil Refiners Association, this waiver would prevent further price increases and maintain current prices.
Earlier, the association had submitted a request to the Ministry of Commerce for price adjustments.
The ministry has decided to forward the proposal to the National Board of Revenue (NBR), which will determine the next steps.
Commerce Secretary Mohammad Selim Uddin, NBR Chairman Md. Abdur Rahman, Chairman of the Bangladesh Trade and Tariff Commission Dr. Moinul Khan, and leaders from the edible oil industry attended.
Earlier, Bangladesh has been witnessing extreme commodity price hikes.
Asif Mahmud Shojib Bhuiyan, Labor and Employment Adviser, said that strict action will be taken under the Special Powers Act against those involved in syndicates inflating commodity prices.
Speaking at the BSRF views exchange meeting held at the Secretariat Media Center, the adviser stressed
that syndicates manipulating prices will face legal consequences, including potential arrests of key
figures from corporate entities responsible for intentional price hikes. The event was organized by the Bangladesh Secretariat Reporters Forum (BSRF).