VAT on Edible Oil Waived

The government waived Value Added Tax (VAT) on all types of edible oil to try to rein in the soaring prices of the essential commodity.

The National Board of Revenue (NBR) issued a gazette notification in this regard. The notification stated that this tax relief would be effective from Monday.

The traders have been demanding withdrawal of VAT at the import stage, but the NBR notification did not say anything about import.

Earlier on Thursday, Finance Minister AHM Mustafa Kamal told a reporter after a government procurement meeting that the VAT has been withdrawn to control the market prices of edible oil.

Later, the finance minister said that the tariffs on essential commodities including edible oil, sugar and peas will be withdrawn soon.

The NBR imposed 15% VAT on soybean at production level and 5% at the consumer level.

Commerce Minister Tipu Munshi at a press briefing at his Secretariat on the occasion of Consumers’ Rights Day said that the VAT on edible oil imports would be reduced by 10% and VAT at the consumer level by 5%.

At the same time, 15% VAT would be withdrawn at the edible oil production level, he said.