Deadline for VAT exemption on edible oil extended till 30 April

The deadline for VAT exemption on import of soybean oil and palm oil has been extended by four months till 30 April in order to keep stable the price of such edible oil, reports news agency BSS.

The National Board of Revenue (NB) has issued a notification in this regard on Monday.

Earlier, on 31 December, 2022, the deadline for VAT exemption on import of such edible oil ended.

The commerce ministry recently sent a letter to the National Board of Revenue (NBR) requesting it to extend the timeframe of VAT exemption on edible oil imports till 30 June this year to keep its price stable during the holy month of Ramadan and the Eid-ul-Fitr.

In response, the NBR has taken such decision to extend the timeframe.

Earlier, on 4 October last year, the NBR exempted all types of VAT on refined edible oil at production and supply stage to keep the price of soybean oil and palm oil stable considering the price hike of refined and non-refined edible oil in international market.

Prior to that, the NBR on 16 March last year reduced the VAT on non-refined soybean oil and refined palm oil at 5 per cent from 15 per cent.

Currently, there is an annual domestic demand for 2 million tonnes of edible oil of which 200,000 tonnes is met internally while the rest is being met through import of soybean oil and palm oil.