NBR likely to keep 5pc VAT on edible oil imports until Sept 30

The National Board of Revenue (NBR) is likely to provide a scope to edible oil refiners to import the essential cooking ingredient by paying only 5 per cent Value Added Tax (VAT) until September 30, an official said today.

The move is being considered as prices of edible oil are still high even after refiners cut soybean oil prices by up to Tk 6 per litre on June 26.

Consumers currently buy a litre of bottled soybean oil for Tk 190 to Tk 200, down 3 per cent from Tk 195 to Tk 210 a week ago, according to prices data collected by the state-run Trading Corporation of Bangladesh.

Prices of 5-litre bottles of soybean oil and palm oil also declined.

On March 16 this year, the NBR slashed the VAT on edible oil imports to 5 per cent from 15 per cent to give some relief to consumers amid a public outcry against surging prices, slow delivery by mills, and stockpiling by a section of traders.

The benefit expired on June 30, 2022.

Earlier on March 14, the NBR removed both the 15 per cent VAT at production and 5 per cent VAT at the trading stage for edible oil.