The government is considering withdrawal of 5.0 per cent value-added tax (VAT) at the import stage of soybean and palm oils, aiming to keep the supply and prices stable in the market.
The commerce ministry would soon request the National Board of Revenue (NBR) to take necessary measures in this regard as decided at a meeting with the Bangladesh Vegetable Oil Refiners & Vanaspati Manufacturers Association (BVORVMA) on Tuesday. Commerce Adviser Dr. Salehuddin Ahmed presided over the meeting.
In the meeting, the association sought exemption from the existing 5.0 VAT as well as from all VAT imposed at the production and business stages.
Earlier, the Bangladesh Trade and Tariff Commission recommended revoking the VAT at import stage and VAT at production level which was sent to the NBR with a recommendation to withdraw the taxes.
The commerce ministry is expected to write to the NBR in this regard today or tomorrow, according to an official.
The apex body of edible oil producers earlier requested the commerce ministry to adjust the prices of soybean and palm oils due to the price hike in the global market, he added.
The official also said the government has chosen not to increase cooking oil prices, despite requests from refiners, in order to keep essential prices at an affordable level in the coming days.
On April 18 last, the refiners raised soybean oil price by Tk 2.0-4.0 a litre.
The price of bottled soybean oil has been set at Tk 167 a litre from Tk 163 earlier. The retail price of loose soybean oil has been set at Tk 147, marking a surge of Tk 2.0 per litre.
The retail price of the five-litre bottled soybean oil has been raised to Tk 818 from Tk 800. The maximum price of palm oil has been fixed at Tk 135 a litre.
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