Edible oil’s VAT at production, trading stages waived

The National Board of Revenue (NBR) has finally waived the value-added tax (VAT) on edible oil at both production and trading stages as per the government decision.
The move is aimed at cutting the indirect tax on the essential cooking item to ensure people can buy it at lower prices since the edible oil market has become volatile for the slow delivery by the millers and stocking by a section of traders amid surging international prices.
Before the withdrawal, the NBR collected 15 per cent VAT on production and 5 per cent on the trading stage of soybean oil. The country has to import edible oil to meet local demand. 
The VAT exemption at the production and trading stages will remain in place until June 30, 2022, according to a notification of the NBR issued today. 
Despite the removal, businesses will have to count 15 per cent VAT during importing crude soybean oil and palm oil until the government cuts or withdraws the indirect tax. 
At a press briefing today, Commerce Minister Tipu Munshi said the government would cut the VAT at the import stage to 10 per cent from 15 per cent to enable consumers better afford the cooking oil.
A five-litre container is selling at as high as Tk 820 at the retail market in Dhaka today, up from the government-fixed rate of Tk 795.