VAT on edible oil only 5% now
The National Board of Revenue (NBR) today cut value added tax (VAT) at imports of edible oil to 5 per cent from 15 per cent in line with the government's decision to reduce the indirect tax to give some relief to consumers.
With the reduction, consumers will have to pay only 5 per cent VAT all through the value chain of the soybean oil and palm oil, imported mostly to meet domestic requirements.
Md Shafiul Ather Taslim, director of TK Group's finance and operations, said consumers may get Tk 16-17 prices benefit at Tk 168 for each litre of bottled oil following the reduction of VAT at the import stage.
There will be an effect on prices from tomorrow and the day after. In the case of bottled oil, consumers will have to wait until Sunday evening as offices and factories will remain closed in the next three days, he said.
On March 14, the NBR removed 15 per cent VAT at production and 5 per cent VAT at the trading stage of refined soybean and palm oil.
Retailers in the markets of Dhaka city sold each litre of soybean oil at Tk 165-Tk 170 yesterday from Tk 165-Tk 170, according to Trading Corporation of Bangladesh.
The NBR said it reduced VAT on refined soybean oil, crude soybean oil, crude palm oil and other refined palm oil to 5 per cent and the reduced VAT rate would remain valid until June 30, 2022.