Govt likely to reduce VAT on edible oil

The government is likely to reduce value-added tax (VAT) on imports, processing and trading of soybean and palm oil to contain the prices of the essential, the commerce ministry said in a statement.

At a meeting chaired by Finance and Commerce Adviser Salehuddin Ahmed today, the Bangladesh Trade and Tariff Commission recommended reducing VAT on imports of crude soybean oil and unrefined palm oil to 10 percent from the existing 15 percent.

It also suggested complete removal of the VAT at the production and trading stage of the edible oil.

A plan is also there to request the NBR to reduce the VAT, according to the statement.

The NBR will later take decision in this regard, said the ministry.

The decision was taken as prices of soybean and palm oil soared in the international market over the last several months. 

At the meeting, the representatives of the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association said prices will not increase if the government removes import tariff on edible oil.