VAT exemption likely on edible oil import from this week

Exemption of Value Added Tax (VAT) on import of edible oil may be announced from this week, according to the National Board of Revenue (NBR).

The VAT is likely to be exempted to keep the market stable in the wake of price hike of edible oil and the upcoming Ramadan.

The commerce ministry recently wrote to the NBR to exempt VAT.

The NBR is studying the request of the commerce ministry. There is an imposition of 15 per cent of VAT on edible oil at the import and production level. The traders have demanded exemption of VAT at the import and production level.

An high official at the VAT department said they are working to exempt VAT.

The price of edible oil is increasing and one litre is being sold at Tk 168. The commerce ministry has discussed the matter with the importers. The ministry has already rejected the businessmen's proposal to increase the price of edible oil.

The Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) held a meeting with the importers and traders to find out ways to keep the edible oil stable.

The importers demanded withdrawal of VAT on import of edible oil for the next three months.