Home ›› 17 Mar 2022 ›› Front
The National Board of Revenue (NBR) has finally reduced Value Added Tax (VAT) on the import of crude and refined edible oil by 10 per cent.
The revenue board announced the decision by publishing a statutory regulatory order (SRO) on Wednesday.
According to SRO, NBR set VAT on crude and refined soybean and palm oil at 5 per cent, down from 15 per cent, at the import stage.
The order will remain effective till June 30.
With the reduction of VAT at the import stage, prices per litre of soybean and palm oil were likely to fall by Tk 10 to Tk 12 depending on the import price, importers said.
Earlier, NBR withdrew Value Added Tax (VAT) on refined soybean and palm oil at production and retail stages.
With the new SRO, there will be no other duty or tax on cooking oil apart from the 5 per cent VAT.
After withdrawing VAT at the production and business stage, City Group Director Biswajit Saha told The Business Post that prices at mill gate would fall by Tk 3 while retail prices would go down by Tk 7 if purchased from departmental stores and super shops.
“Small store owners do not pay VAT, and that is why the impact of VAT reduction will not be visible at that level,” he said. “However, retail prices of cooking oil are expected to fall as VAT has been reduced at the import stage,” he noted.
On Wednesday, The Business Post found that a five-litre soybean oil bottle was being sold at Tk 800 at Dhaka’s retail markets, up from Tk 795 set by the government. Besides, a one-litre soybean oil bottle was being sold between Tk 165 and Tk 170 while non-bottled palm oil was between Tk 155 and Tk 160.
Non-bottled soybean oil was not available in the market.
Earlier on Monday, Prime Minister Sheikh Hasina ordered authorities concerned to withdraw VAT on soybean oil at all stages during a cabinet meeting.
Rising prices of cooking oil and other essentials in recent days caused great suffering to low- and middle-income people in the country.
