90,000 Tonnes of Edible Oil Imported after VAT Reduction

Commerce Minister Tipu Munshi on Monday said that around 90,000 tonnes of edible oil was imported from abroad at a lower rate after VAT was reduced on its import, reports BSS.

"The impact of VAT reduction on edible oil has already been seen in the market. The edible oil at retail level is being sold at Tk 162 to Tk 168 per litre," he said.

The commerce minister said this while briefing reporters after chairing the first meeting of the taskforce to review the price of essentials and the market situation held at the ministry conference room.

He said that there is sufficient stock of edible oil in the market while strict monitoring is there so that the supply of essential items including edible oil is not hindered.

Tipu also informed that the Ministry of Home Affairs and the law enforcement agencies concerned would extend necessary cooperation and support in this regard.

Earlier on March 16, the National Board of Revenue (NBR) reduced VAT from 15 per cent to 5 per cent at import level on soybean oil and palm oil to rein in the high price trend.

Answering a question, the commerce minister said that he talked to the home minister to enquire if there is any incident of extortion from goods transportation to marketing. "He (home minister) has assured me of taking necessary steps in this regard," Tipu said.

He mentioned that the government wants to keep the state-run Trading Corporation of Bangladesh (TCB) as a strong entity while the corporation has a stockpile of around 30 per cent of the demand for essential items.

Tipu said since the TCB has been in a strong position, the government has been able to deliver essential items at an affordable price to one crore families. "If the TCB remains in such a strong position, there will be no hassle for the countrymen."

Replying to another question, the commerce minister said that it was not the jurisdiction of his ministry to look after the price of vegetables. "But, I think if the local supply chain could have been further developed, it would have been possible to reduce the price of vegetables at retail level," he said.

Tipu said in order to avert any disruption in the supply chain, a specific time frame has been fixed for the suppliers, including that of the refineries of the edible oil, so that they could supply products within their stipulated time frame.