VAT cut on edible oil comes into effect, expected to reduce price by 20%
The National Board of Revenue (NBR) has reduced the VAT on crude and refined soybean oil, palm oil, and other edible oils from 15% to 5%, reads a Statutory Regulatory Order (SRO) issued by the revenue authority today (17 October)
The price of edible oil is expected to reduce by 20% in the market as the value-added tax (VAT) cut and withdrawal from edible oil import, production, and distribution stages, announced by the government on Tuesday, has come into effect.
The National Board of Revenue (NBR) has reduced the VAT on crude and refined soybean oil, palm oil, and other edible oils from 15% to 5%, reads a Statutory Regulatory Order (SRO) issued by the revenue authority today (17 October).
The SRO also states that all VAT - previously 5% - on local production and trading stages has been withdrawn.
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According to NBR officials familiar with the matter, the reduction in VAT should lead to a decrease in the price of edible oil by approximately 20% at the consumer level.
According to the Trading Corporation of Bangladesh (TCB) of commerce ministry, per litre of soybean oil price sold at TK165 to Tk170, and palm oil Tk147 to Tk151, today.
