BTTC for extension of facilities until June 30

State-run Bangladesh Trade and Tariff Commission (BTTC) has recommended extension of duties, taxes and VAT-exemption facilities on edible oils until June 30, aiming to keep the prices and supply of such oils stable in the local market.

It requested recently the National Board of Revenue (NBR) to take necessary measures in this regard so that prices and supply of cooking oils-soybean, palm, sunflower and Canola oils-remain stable during the upcoming Eid-ul-Fitr and Eid ul Azha.

Earlier in December 2024, the board issued a circular, offering the tax exemptions on both refined and unrefined edible oils until March 2025.

The VAT on imports of edible oils, including Soybean and palm oils, reduced to 5.0 per cent. Later, the revenue authority exempted import tax and lowered value-added tax (VAT) to 5.0 per cent on sunflower and canola oil, aligning it with Soybean and palm oils.

The BTTC also recommended inclusion of a necessary provision/amendment on sunflower and sunflower oils in the next national budget with an eye to diversifying the local edible oil market.

It mentioned that Sunflower and Canola are popular edible oils across the globe currently. Now, there are 32 per cent and 58.60 per cent taxation value in import of Canola and sunflower respectively that discourage the import of both products.

The BTTC said the prices of canola and sunflower oils are close to palm and soybean oil and their uses are complementary. The government should treat the products with the same facilities like soybean and palm oil to increase their supply and diversify such markets and protect the consumers' interest.

It believes that the edible oils market will be stable and consumers' interest will be protected if the same facilities are given to soybean, plam, canola and sunflower.

Bangladesh relies heavily on imports to meet its domestic demand of more or less 2.3/2.4 million tonnes of edible oil annually.

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