VAT cut on edible oil

Staff Reporter :

The price of edible oil is expected to reduce by 20 per cent in the market as the value-added tax (VAT) cut and withdrawal from edible oil import, production, and distribution stages, announced by the government on Tuesday, has come into effect.

The National Board of Revenue (NBR) has reduced the VAT on crude and refined soybean oil, palm oil, and other edible oils from 15 per cent to 5 per cent, reads a Statutory Regulatory Order (SRO) issued by the revenue authority on Thursday (17 October). The SRO also states that all VAT – previously 5 per cent on local production and trading stages has been withdrawn.

According to NBR officials familiar with the matter, the reduction in VAT should lead to a decrease in the price of edible oil by approximately 20 per cent at the consumer level. According to the Trading Corporation of Bangladesh (TCB) of commerce ministry, per litre of soybean oil price sold at TK165 to Tk170, and palm oil Tk147 to Tk151, on Thursday.