Govt waives 20% VAT on Soybean oil
However, the existing 15% VAT on the import of edible oils remains unchanged
The government has waived 20% value-added tax (VAT) on soybean oil at production and consumer level till 30 June.
The National Board of Revenue (NBR) issued a circular regarding the VAT exemption Monday (14 March).
However, the existing 15% VAT on the import of edible oils remains unchanged, according to the circular signed by NBR Chairman Abu Hena Md Rahmatul Muneem.
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The Bangladesh Tariff Commission and the Ministry of Commerce have urged the NBR several times to withdraw VAT on edible oil imports.
Presently, 15% VAT is imposed on the import stage, 15% on production stage and 5% on supply stage.
However, the total amount of VAT importers need to pay has gone up as prices of imported edible oils increased in the international market, which created a downward pressure from importers to consumers.
As prices continue to soar in the last two months, demand for VAT exemption was reiterated from various quarters.
