‘Exempt 5% VAT on soybean oil imports’

Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) President Md Jashim Uddin on Wednesday urged the government to exempt the existing 5 per cent VAT on soybean oil at import level to control its prices in the local market.

He made the call at a view exchange meeting with edible oil importers, stockers, and suppliers at FBCCI office in the capital.

Earlier on March 14, the government reduced value-added tax (VAT) on the imports of soybean oil and crude palm oil from 15 per cent to 5 per cent till June 30.

During the meeting, the FBCCI president directed all oil traders to do business properly instead of stocking up.

“The authorities concerned should not also cause any hassle to the traders in the name of conducting drive,” he added.

Mentioning that 99 per cent businesses are genuine, Jashim said, “During Ramadan, Trading Corporation of Bangladesh (TCB) purchased around two crore litres of oil from the market, creating a disbalance in supply and demand.

“Authorities concerned should make such plans beforehand so that it does not impact the market. The same rule should be applied to other essential products as well to have better control on the market.”

Jashim also called upon Bangladesh Dokan Malik Samity and other business leaders to observe the market so that no one can go overboard in stocking up.

President of Bangladesh Wholesale Edible Oil Traders’ Association, Golam Mawla, said, “Many oil traders will give up the business if they are harassed during the drive.”

“Traders are supposed to stock a limited amount of oil for selling it to the customers. The oil market has become unstable due to a supply crunch,” he added. S Alam Group Senior General Manager Kazi Salahuddin Ahammad said, “Indonesia suddenly stopped exporting palm oil during Ramadan which had an impact on the oil market.”

“There was no problem with our supply chain and have no idea why the oil market became unstable. We have a sufficient amount of oil stock. Hopefully, the market will be stable again,” he added.

City Group Adviser Amitava Chakraborty said they supplied oil at Tk160 from March 20 to May 7. “The price of oil increased in our country due to the hike in the international market.”

Md Shafiul Ather Taslim, director of TK Group’s finance and operations, said, “For the sake of transparency, TCB should import all the products instead of buying from the local market.”

“The government should also give a guideline that how many days and how much amount of oil can be kept in stock,” he added.