The government has withdrawn the value added tax (VAT) on soybean and palm oils at both production and trading stages.
The VAT exemption will come into effect immediately and remain in place until June 30, said a gazette notification issued by the Ministry of Finance on Monday.
Although the traders have been demanding withdrawal of VAT at the import stage, the notification did not say anything about the matter.
Earlier on Thursday, the government decided to withdraw 15 per cent VAT on edible oil imports at the production level and 5 per cent at the consumer level.
Meanwhile, Commerce Minister Tipu Munshi on Monday said that VAT on import level will be fixed at 5 per cent from the existing 15 per cent.