VAT exemption on edible oil has been lifted
.jpeg) |
| Soybean Oil | Picture Collected |
The VAT rate on edible oil has reverted back to earlier. Value Added Tax (Musak) or VAT is waived at the level of production and trading of edible oil for six and a half months. There was a 5 percent VAT levy at the import level instead of 15 percent. That concessional VAT facility is no more from today Saturday. The facility was extended to edible oil importers and traders till September 30 in a National Board of Revenue (NBR) notification. This facility has expired on Friday.
In the month of March, the price of edible oil in the local market started increasing. At one stage, the price of edible oil exceeded Tk 200 per liter. Currently the price is 192 rupees.
On March 14, the NBR issued a notification waiving 15 percent VAT at the production level and 5 percent at the trading level of soybean and palm oil. Two days later, the 15 percent VAT imposed on import of edible oil was reduced to 5 percent. Then its term was fixed till June 30. Later, in another notification on July 3, the VAT exemption period was extended to September 30. Although that period expired last Friday, NBR has not issued any new notification for extension.
According to sources from the Ministry of Commerce, currently there is a demand of 2 million tons of edible oil per year. Of this, 2 lakh tonnes are procured from the local market. The remaining 18 lakh tonnes are imported.
Advertisement
.jpeg)
.jpeg)