20 percent VAT exemption on soybean oil

The government has decided to exclude soybean oil from value-added tax (VAT) until June 30, according to Finance Minister AHM Mustafa Kamal.

After a meeting of the government's purchase committee on Thursday, the minister stated that a 15% exemption has been issued at the production stage and a 5% exemption has been given at the consumer level in the case of soybean oil.

The VAT (value added tax) on sugar, chickpeas, and edible oil imports has been withdrawn, according to Mustafa Kamal.

VAT department of the National Board of Revenue (NBR), said no SRO has yet been issued.

Currently, 15 percent VAT is levied on imports, 15% on manufacturing, and 5% on supplies. VAT might be repealed at the production and delivery stages.

The NBR previously stated that it is considering removing the VAT on the import of edible oils in order to control the country's rising prices. 

The Bangladesh Tariff Commission and the Ministry of Commerce have pushed the NBR to remove VAT on edible oil imports on multiple occasions.

On March 7, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has requested the government to remove VAT for three months.

At the moment, there is a 15 percent VAT on edible oil imported into the country. In addition, a 15 percent VAT is levied at the retail level, which is modifiable in conjunction with the import VAT.

However, as the price of imported edible oils grew on the worldwide market, the total amount of VAT importers must pay increased, putting downward pressure on consumers.

As prices have continued to rise in recent months, calls for VAT exemption have been made from a variety of sections.