Doulot Akter Mala
The government is contemplating to reduce the existing taxes levied against imported edible oils in its effort to rein in the escalating prices resulting from international price hike.
Finance Adviser Mirza Azizul Islam will sit in a meeting today (Thursday) with the high-ups of the National Board of Revenue (NBR) to find out ways to keep the prices of edible oil within the reach of consumers.
The government is likely to instruct the NBR to reduce the taxes of imported edible oil in the meeting following escalating prices in the local market, a competent source said.
In the budget for the current fiscal, the government has totally withdrawn the customs duty imposed against import of edible oil.
The existing ad valorem tax on edible oil is 18.75 per cent which includes 15.75 per cent VAT and 3.0 per cent Advance Income Tax (AIT).
There is every possibility of reducing the existing taxes of edible oil to keep its price low in the local market, especially during the holy month Ramadan, a competent source said.
Recently, the government directed all the traders to sell per litre edible oil at Tk 80 at retail level.
During the last few days, the government has explored different ways to rein in the prices of different essential commodities including edible oil.
Sources said the government has been facing mounting pressures from importers to reduce the existing taxes following its price hike in the international market.
The country's monthly requirement of edible oil is around 100,000 tonnes on an average, 90 per cent of which is met through imported soybean and palm oils, industry insiders said.
Prices of edible oil increased further mainly due to short supply in the local markets, rise in transportation costs and price hike of the item in the international market, the traders observed.
Taxes on imported edible oils may be reduced
FE Team | Published: September 06, 2007 00:00:00 | Updated: February 01, 2018 00:00:00
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