VAT on edible oil reduced
FE Report | Saturday, 26 February 2011
FE Report
The National Board of Revenue (NBR) has reduced the rate of value added tax (VAT) by 33.33 per cent on import of edible oil in order to help rein in the prices of the item in the domestic market. According to an order VAT on edible issued by the NBR to this effect, the reduced rate of VAT came into force from February 23, 2011. About 0.11 million tonnes of edible oil now awaiting unloading at Chittagong port will also come under the purview of the reduced rate of VAT. With the reduction, VAT will be deducted at the rate of 10 per cent on import of edible oil. Earlier, a 15 per cent VAT was applicable to import of edible oil. The reduction of VAT on import of edible oil came against the backdrop of a continuous price surge of the essential item in the local market. Loose soybean oil is now selling between Tk 118 and Tk 120 per kg and the price of palm oil varies from Tk 110 to Tk 112 per kg while their prices were Tk 100-105 and Tk 94 to 96 a couple of months back.
The National Board of Revenue (NBR) has reduced the rate of value added tax (VAT) by 33.33 per cent on import of edible oil in order to help rein in the prices of the item in the domestic market. According to an order VAT on edible issued by the NBR to this effect, the reduced rate of VAT came into force from February 23, 2011. About 0.11 million tonnes of edible oil now awaiting unloading at Chittagong port will also come under the purview of the reduced rate of VAT. With the reduction, VAT will be deducted at the rate of 10 per cent on import of edible oil. Earlier, a 15 per cent VAT was applicable to import of edible oil. The reduction of VAT on import of edible oil came against the backdrop of a continuous price surge of the essential item in the local market. Loose soybean oil is now selling between Tk 118 and Tk 120 per kg and the price of palm oil varies from Tk 110 to Tk 112 per kg while their prices were Tk 100-105 and Tk 94 to 96 a couple of months back.