No more VAT waiver on edible oil

The Value Added Tax (VAT) on edible oil went back to its previous state again after six and a half months.

VAT on edible oil was waived on the production and trading stage.

And instead of 15 per cent, there was a 5 per cent VAT imposed on the import level.

That VAT waiver is no longer there from today, Saturday.

National Board of Revenue (NBR) gave edible oil importers and traders this facility till 30 September.

Edible oil price started rising in the local market in last March. At one point, the price of edible oil surpassed Tk 200 per litre. The price at the moment is Tk 192.

On last 14 March, NBR issued a notice waiving 15 per cent VAT on soybean and palm oil at the production level and 5 per cent VAT at the trade level.

Two days later, the 15 per cent VA imposed on edible oil at the import level was reduced to 5 per cent. The time limit for this was fixed till 30 June back then.

Later on 3 July, the time limit for the VAT waiver was extended till 30 September in another notice. Though it expired on last Friday, NBR didn’t issue any new notice extending the period.

It has been learnt through commerce ministry sources that currently there is a demand of 2 million tonnes of edible oil per year.

Only 200 thousand tonnes of that is collected from the local markets while the remaining 1.8 million is imported.