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.
