Staff Reporter :
In response to the repeated demand of the traders, the government on Monday waived the Value Added Tax (VAT) on all sorts of edible oil in a bid to reining the skyrocketing prices of this essential item.
The VAT relief, as per the gazette notification issued by the Finance Ministry, will be effective from Monday and this facility will continue till next June 30.
The VAT exemption would be applicable on the edible oil at local production and business level, the gazette said.
However, the traders demanded withdrawal of VAT at the import stage, but the NBR notification did not say anything about import.
Soon after a procurement meeting on last Thursday, Finance Minister AHM Mustafa Kamal earlier told the media that the VAT from the edible oil has been withdrawn to control the market prices.
The tariffs on essential commodities including edible oil, sugar and peas will be withdrawn soon, the finance minister added.
The NBR imposed 15 per cent VAT on soybean at production level and 5 per cent at the consumer level.
Commerce Minister Tipu Munshi also in a press briefing at his office on the occasion of consumers’ rights day said that VAT on edible oil imports would be reduced by 10 per cent and VAT at the consumer level by 5 per cent.
At the same time, 15 per cent VAT will be withdrawn at the edible oil production level, he added.
Earlier in the day, the Cabinet asked NBR to work on whether import duty on edible oil can be reduced ahead of Ramadan.
