The Bangladesh Trade and Tariff Commission (BTTC) has requested the revenue authority to extend the VAT exemption period for edible oils until June 30 this year to ensure supply and protect consumer interests.

The commission made the suggestion as the VAT benefit for importing soybean, palm, sunflower, and canola oils is set to expire on March 31.

On December 15 last year, the National Board of Revenue (NBR) announced that it would allow the import of crude and refined soybean oil and crude palm oil with a 5 percent VAT.

It also maintained the VAT waiver on the processing and trading of edible oil until the end of March.

Read more

NBR lifts VAT on locally produced edible oils

Additionally, the NBR reduced VAT to 5 percent and exempted the 5 percent advance tax on the import of sunflower and canola oils until the end of this month to encourage imports, boost supply, and curb soaring domestic prices.

The BTTC said it has received requests from edible oil importers and processors to extend the VAT exemption.

BTTC Chairman Moinul Khan said edible oil is legally considered an "essential commodity," and Bangladesh is largely dependent on imports.

"This prompts the BTTC to prioritize stabilizing local markets. We reviewed current international market prices and local demand and concluded that the present duty cuts should be extended until Eid-ul-Azha in the greater interest of consumers," he said.

"We believe the benefits of this extension will outweigh the revenue losses from the duty cuts, benefiting the general public in multiple ways."