Dhaka: The National Board of Revenue (NBR) has announced a reduction in the Value Added Tax (VAT) on the import of edible oil, bringing it down to 5 percent from the previous 10 percent. This decision was accompanied by a circular issued by the revenue board, aiming to ensure a steady supply of edible oil in the market.
According to Bangladesh Sangbad Sangstha, the NBR had previously issued similar circulars to waive duties on the import of essential goods such as rice, potatoes, sugar, onion, egg, and edible oil, with the intent of boosting their market supply. On October 17, the NBR also waived a 15 percent VAT on the local production stage and a 5 percent VAT on local businessmen at the supply stage for refined and non-refined soybean and palm oil.
With this recent VAT reduction, the only remaining VAT on the import stage of edible oil is 5 percent. The NBR believes these measures will help maintain the price of edible oil at a manageable level, preventing consumers from having to purchase it at inflated
prices. The VAT reduction on edible oil imports is set to remain in effect until December 15, 2024.