VAT on edible oil import cut to 5%

The government has reduced value-added tax (VAT) on import of edible oil to 5 percent from 15 percent in order to contain the price hike of the essential cooking item in the market ahead of Ramadan, the fasting month of Muslims.

The Internal Resource Department of the Finance Ministry issued a gazette on Wednesday saying the tax waiver will remain effective until June 30.

According to the gazette, the VAT has been reduced on the imports of refined and unrefined soybean oil and refined and unrefined palm oil.

With this, the government has reduced VAT on edible oil two times as part of its efforts to keep the local market in a stable state amid the global crisis.

Earlier, VAT on refined and unrefined soybean and palm oil was 15 percent and now it stands at 5 percent, according to the gazette.

While talking to the Business Insider Bangladesh about the latest development, Taslim Shahriar, senior managing director of Meghna Group, said that the prices of edible oil will come down in the local market because of such a government decision.

However, the Meghna Group official said some consignments of oil have already been cleared after paying VAT in accordance with the previous rate and thus the price is likely not come down much.