Government Cuts Import Duty on Edible Oils

Value Added Tax (VAT) on edible oil import is being reduced by 10 percent.  Alongside, 15% VAT will be relaxed on edible oil production while 5% for consumers.

Commerce Minister Tipu Munshi made the disclosure in a press briefing at the conference room of the ministry at the Secretariat on Monday (March 14).

Tipu Munshi said, “Today, Prime Minister has issued directives to us to reduce import duty on edible oil by 10 percent. Currently, edible oil is imported with 15 percent VAT. If 10 percent is reduced, VAT will be 5 percent. 15 percent VAT is being relaxed at the production level while 5 percent for consumers. We do not have the ability to reduce the price of edible oil in the international market. Brazil will be able to say whether the price will go down or not. Because 90 percent of the oil we import comes from there.”

He further said, “Someone who needs 5 liters of edible oil, if he/she buys 10 liters, we cannot stop him/her. If everyone starts buying extra edible oil on the occasion of Ramadan, there will be a shortage in the market. We should buy as much as we need. We will not be able to enter everyone’s kitchen. We urge all not to buy too much edible oil during Ramadan.”

When asked if there was a crisis of edible oil, Tipu Munshi said, “We have enough edible oil in stocks which will cover the month of Ramadan. Now the discussion is likely over the price. Some people are saving, that’s a big problem. TCB is ready to provide products to one crore families.”