NBR extends tenure of VAT cut on edible oil

The National Board of Revenue (NBR) has extended a VAT reduction of 5 per cent on edible oil for four more months to April 30 so that consumers do not feel the burden of the indirect tax on prices, according to a notification today.

The move comes as the value-added tax (VAT) reduction on soybean and palm oil ceased to come into effect on December 31.

The NBR in March slashed the VAT on soybean oil and unrefined palm oil from 15 per cent to 5 per cent during imports and exempted the indirect tax at the production and trading stages until June 30, 2022.

This was amidst a public outcry over the soaring of prices of the key essential commodities, slow delivery by mills and stockpiling by a section of traders.

The NBR later extended the benefit until September 30 as prices of the key commodities remained high in the domestic market.

In Dhaka today, prices of loose soybean oil decreased 0.86 per cent to Tk 167 to Tk 170 per litre from that a week before, according to market prices data compiled by the state-run Trading Corporation of Bangladesh.

Packaged soybean oil prices edged up 1.89 per cent to Tk 187-Tk 190 per litre.