Reduced vat facility for edible oil extended till September
The facility will take effect on 1 July and end on 30 September
The government has reduced the Value Added Tax (VAT) on edible oil imports and increased the benefits of VAT exemption on local production and sales by three more months.
The Internal Resources Division of the Ministry of Finance announced the extension in a statutory regulatory order (SRO) issued on Monday.
The VAT facility takes effect on 1 July and ends on 30 September.
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To cope with rising edible oil prices in the global market, the government reduced VAT on edible oil in March by another SRO, which ended on 30 June.
The decision to continue the same VAT facility for three more months comes four days after the first SRO expired.
Earlier, VAT on edible oil was 15% at the import stage, 15% at the local refinery and 5% at the trading stage. At present, only 5% VAT has to be paid on edible oil at the import stage.
