Egg, sugar, oil prices to drop as VAT withdrawal, import duty cut comes into effect
The VAT withdrawal and duty cuts have been made in order to increase the supply of eggs, edible oil and sugar in the market, and keep the price of daily necessities within the purchasing power of the common people
The soaring prices of eggs, edible oil and sugar are expected to drop soon as the government announced reduction of import duties and withdrawal of value-added tax (VAT) on the essential commodities has come into effect today (17 October).
The VAT withdrawal and duty cuts have been made in order to increase the supply of eggs, edible oil and sugar in the market, and keep the price of daily necessities within the purchasing power of the common people, the National Board of Revenue said in a notification issued today.
"The existing import duty on eggs has been reduced from 25% to 5%. This will reduce the price of a dozen eggs at the import level by Tk13.80," reads the NBR notice.
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"The reduction in import duty will increase the supply of eggs in the market and reduce the price of eggs at the consumer level, making them more accessible to the general consumer," it adds.
According to the NBR, this will also result in price drops in goods of confectionery, bakery and other egg-based food manufacturing industries.
"The exemption on import of eggs will remain in force till 15 December 2024."
Sugar sweetens
As per the NBR notice, from today, the 30% regulatory duty on refined and unrefined sugar has been reduced to 15% from 8 October.
On top of the 50% percentage-point reduction in regulatory duty, the NBR today further reduced the existing import duty on re-refined sugar from Tk6,000 per tonne to Tk4,500 per tonne within a week to increase the supply of refined sugar in the market, said the revenue board.
"Substantial reduction in import duty and regulatory net on refined sugar will increase market supply by increasing refined sugar imports and keep sugar prices at a sustainable level," it said.
Less toil for oil
The price of edible oil is expected to reduce by 20% in the market as the VAT cut and duty withdrawal from edible oil import, production, and distribution stages has come into effect, the NBR said.
In a Statutory Regulatory Order (SRO), it said the NBR has withdrawn the 15% VAT levied on local production of crude and refined soybean oil, palm oil, and other edible oils.
Besides, the 5% VAT levied on the import of edible oils have also been withdrawn.
In addition, the import duty on the import of the oils have been reduced by 5% to 10%.
