Tax and VAT on all edible oils suspended to reduce prices in Bangladesh
17-Dec-2024 05:13 PM
In a significant move to reduce edible oil prices in Bangladesh, the National Board of Revenue (NBR) has suspended taxes and VAT on all types of edible oils, including sunflower, canola, soybean, and palm oil. The measure aims to alleviate the current shortage and high prices of edible oils in the country, which have been causing hardship for the public.
Key changes announced by the NBR include:
Exemption from Import Duties and Taxes: All types of edible oils, both crude and refined, are exempt from import duties, regulatory duties, and advance income tax (AIT) until March 2025. This is intended to encourage cheaper imports and increase the supply of edible oils in the domestic market.
VAT Reduction: The VAT rate on the import of edible oils has been reduced from 15% to 5%. This change ensures that importers only pay 5% VAT on edible oil imports, with exemptions from all other duties and taxes.
Impact on Domestic Prices: As a result of these changes, the price of edible oils in Bangladesh is expected to decrease by 40-50 taka per liter, providing relief to consumers.
This policy change follows a recommendation by the Bangladesh Trade and Tariff Commission, which suggested the reduction or removal of import duties and VAT on sunflower and canola oils to give consumers more affordable options. The NBR's move is designed to increase the availability of edible oils, helping to stabilize prices and make them more accessible to the general population.