NN Online:
The import-level value-added tax (VAT) on edible oil has been lowered from 10 per cent to 5 per cent to ensure a stable market supply.
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 per cent tax exemption was allowed at the local production level, while a 5 per cent 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 per cent 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.
