FBCCI for VAT withdrawal on edible oil import

The Federation of Bangladesh Chambers of Commerce and Industry on Monday urged the government to withdraw VAT on the import of edible oil for next three months to bring stability in the edible oil market.

The apex trade body also called on the traders to sell edible oils at the prices fixed by the government.

“If prices of oils increase in global market, it will leave an impact in our country at least two months later. Why do the prices in Bangladesh go up instantly?” FBCCI President Md Jashim Uddin said at a meeting with the importers, millers, refiners, wholesalers and leaders of different market committees to discuss the market situation of edible oil at the FBCCI Auditorium.

Jashim said they will also form a market monitoring cell soon to adjust prices in Bangladesh.

Citing the example of India, the FBCCI chief said, India has adjusted VAT and duty on edible oil three times and Bangladesh should also go for the adjustment to bring back normalcy in the cooking oil market.

The government should introduce bond on import of edible oil to stop the manipulation of the prices of widely consumed Soybean oil, Jashim said.

He also said after consulting the stakeholders, they reached a conclusion that there will be no crisis of oil till beginning of the holy month of Ramadan.

He also warned of stern action against those who sell oil at prices higher than the fixed one.

“I am the president of all businesses except unscrupulous one. I am agreed to go to the NBR or the government to bargain for your benefits. Our private sector contributes 85 per cent of the economy. Why would we shoulder the ignominy of ‘unscrupulous businesses’?” said Jashim.

Meghna Group Senior AGM Taslim Shahriar told the meeting they do not manipulate the market. The oil prices go up following the international market and in the past one year, the price of the edible oil increased by 61 per cent in the global market whereas it shoot up in Bangladesh by 21 per cent.

City Group Director Biswajit Saha said there is no supply shortage from millers. The City Group supplies 2,500 tonnes oil daily. “Some traders stock oils and strengthened market monitoring can make the oil market stable,” he added.

S Alam Group Senior General Manager Kazi Salahuddin Ahammad called for withdrawal of VAT on edible oil. Echoing the same demand, TK group director Shafiul Taslim said, the government earns Tk 25 to Tk 27 in revenue from per liter Soyabean oil.

Bangladesh Dokan Malik Samity president Md Helal Uddin urged the commerce ministry to fix the oil price after 15 days to control the market.

President of Bangladesh Paikari Bhojjaya Tel Byabasayee Samity, the association of edible-oil wholesalers, Golam Mawla urged the group of companies involved in the oil business to supply oils properly in the market.

President of Moulavibazar Byabasayee Samity Md Bashir Uddin stressed the need for coordination among all businesses to tackle existing challenges.

Among others, FBCCI Senior Vice President Mostofa Azad Chowdhury Babu, Vice President Md Habib Ullah Dawn, Director Rezaul Kariem Rejnu, Harun Or Rashid, Abu Hossain Bhuiyan (Ranu), and Secretary General Mohammad Mahfuzul Hoque, were also present at the meeting.