VAT on edible oil reverts to 15%
The VAT rate on edible oil has reverted back to 15% after a relaxation for six and a half months.
Earlier this year, the government instated a 5% VAT levy at the import level instead of 15% to keep the price down. However, that concession expired Saturday (1 October).
The facility was extended to edible oil importers and traders till 30 September in a National Board of Revenue (NBR) notification issued earlier in March.
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In March, the price of soybean oil in the local market started increasing and at one point shot up over Tk200. Currently, the price is Tk192.
On 14 March, the NBR issued a notification waiving 15% VAT at the production level and bringing it down to 5% for soybean and palm oil.
Two days later, the 15% VAT imposed on import of edible oil was reduced to 5% till 30 June.
Later, in another notification on 3 July, the VAT exemption period was extended to 30 September.
Although that period expired last Friday, NBR has not issued any new notification for extension.
