Govt to extend VAT exemption facility for edible oil traders

The government has decided to extend the existing value-added tax (VAT) exemption facility for the country's edible oil traders by one year in order to help keep its price stable in the domestic market, officials said.
The decision was taken recently at a meeting of the Bangladesh Tariff Commission (BTC) held in this connection, they said.
In February 2015, the National Board of Revenue (NBR) issued two SROs (statutory regulatory orders) according to which the facility was given to the traders on refined soyabean and refined palm oil for more than 16 months (up to June 30, 2016).
According to the fresh decision the traders will enjoy the facility up to June 30, 2017.
The country's edible oil traders had long been demanding introduction of a single-stage VAT saying that VAT at three stages - import, production and trading or distribution - is causing hassles for them due to frequent interruption by VAT officials.
The NBR had initially opposed the plea of importers of vegetable oil saying that acceptance of such demand would disrupt the standard VAT collection system which might create scope of tax evasion.
But the revenue board later agreed to provide the facility in line with the approval of the ministry of finance. The ministry of commerce also strongly recommended the NBR for accepting the demand.
Earlier, a 10 per cent VAT was imposed on accessible price at import stage, 15 per cent on specific tariff value of the product at production stage and 4 per cent at trading or distribution stage, BTC focal point officer Md Mahmudul Hasan told the FE on Monday.
A senior official of the ministry of commerce said the government always monitors the prices of essential commodities with a view to protecting the common people from purchasing the same at abnormal prices. "From our experience we notice that the prices of essential commodities usually go up during the holy month of Ramadan."
So, the government is set to extend the existing VAT exemption facility for edible oil traders by one year more for stabilising the prices of essential items during the next Ramadan, he added.  
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