VAT on edible oil lowered to 5pc from 15pc

Consumers are going to be relieved from paying value-added tax while buying edible oil, particularly soybean oil, as the government has decided to cut the indirect tax on imports of crude soybean oil to 5 per cent from 15 per cent currently. 

The move is aimed at easing pressures on the budgets of the consumers, who are already stressed by the high prices of key essential commodities.

Gazi Towhidul Islam, public relations officer of the finance ministry, said the NBR would issue a notification in this regard.

The move comes a day after the National Board of Revenue (NBR) removed VAT at production and trading stages of soybean and palm oil at 15 per cent and 5 per cent respectively to lessen the prices of edible oil, which have risen to very high levels globally.

However, top officials of two major cooking oil importers and processors of the country earlier said customers might be able to pay just Tk 1.5-Tk 3 less per litre following the removal of VAT at producton and trading stages.

Without the removal of VAT at the import stage, the benefit for consumers will be little, said refiners.