The cabinet on Monday directed the National Board of Revenue (NBR) to cut the value-added tax (VAT) on imports of edible oil and other daily commodities to the lowest ceiling.
Cabinet Secretary Khandker Anwarul Islam briefed the media about the direction after a cabinet meeting chaired by Prime Minister Sheikh Hasina.
The prime minister joined the meeting virtually from Ganabhaban while her cabinet colleagues were connected from the cabinet room of the Cabinet Division in Bangladesh Secretariat.
The cabinet secretary said the government has already waived VAT on edible oil at the retailer level as the law minister informed the meeting that he signed the statutory regulatory order in this regard.
“At the import level, there is now 15 per cent VAT on edible oil. The revenue board has been directed to consider reducing it as much as possible and take immediate action in this regard.”
Although the VAT would not be exempted completely, Anwarul Islam said, they assumed that the VAT reduction at the import level would make a direct positive impact on the local market.
Earlier on Thursday, the government decided to withdraw VAT on edible oil imports till June 30 to keep it affordable for consumers during the upcoming Ramadan. It has also decided to withdraw import duties on sugar and chickpea for the same reason.
Finance Minister AHM Mustafa Kamal made the announcement while briefing reporters after two consecutive meetings of the Cabinet Committee on Economic Affairs and the Cabinet Committee on Government Purchase.
The government withdrew 15 per cent VAT on edible oil imports at the production level and 5 per cent at the consumer level.
