Amid volatility in the international market, the government is considering extension of the VAT waiver on edible-oil imports until June next year to keep supply and prices of the essential item stable, officials said.
The Bangladesh Trade and Tariff Commission (BTTC) has recently written to the National Board of Revenue (NBR), requesting extension of the tenure of two statutory regulatory orders (SROs) which were issued in mid-March this year to reduce the VAT.
On March 14, the NBR in a notification withdrew the entire VAT (value added tax) on local production and trading stage of refined soybean oil and palm oil until June 30 this year.
On March 16, the revenue authority reduced the VAT by 10 per cent to 5.0 per cent on crude soybean oil and palm oil at import stage in line with a decision of the government high-ups.
The BTTC in a recent letter to the NBR said the prices of crude and refined edible oil are yet to stabilise in the international market.
Also, the projections of the World Bank and the Food and Agriculture Organisation (FAO) do not indicate that the prices of consumer goods would become stable shortly.
NBR Member (VAT Policy) Zakia Sultana told the FE on Thursday that they had discussions on the issue, but yet to take any decision.
syful-islam@outlook.com