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The government has extended the period of value added tax (VAT) exemption on edible oil imports till December 31.
The extension came into effect on October 1, said a notification issued by the Ministry of Finance on Tuesday.
Officials said due to the extension of the VAT exemption period, consumers may enjoy buying soybean and palm oils at cheaper prices.
The decision on extending the VAT exemption facility comes following a letter from the commerce ministry issued to the National Board of Revenue (NBR) about the VAT cut on edible oil taking into consideration the high exchange rate of the US dollar.
Earlier on March 14, the NBR, in a notification, slashed 20 per cent VAT — 15 per cent at the production stage and 5 per cent at the consumer level — on edible oil to lessen pressure on consumers amid high inflation and skyrocketing prices of essential commodities.
On March 16, it also reduced VAT at the import level to 5 per cent from 15 per cent.
The exemption facility for the refiners and traders was set until June 30.
Later, in another notification on July 3, the VAT exemption period was extended till September 30.
At present, bottled soybean oil costs Tk 178 per litre and loose soybean oil Tk 158 per litre. A five-litre bottle of the commodity has been retailed at Tk 880.
Besides, the price of palm oil has been fixed at Tk 125 a litre.
According to the commerce ministry, Bangladesh has a demand for around 20 lakh tonnes of edible oil per year while around 10 per cent of it can be sourced from local production and the rest comes from imports.
