Govt withdraws VAT on edible oil, other commodities : FM Kamal

Finance Minister (FM) AHM Mustafa Kamal on Thursday said the government has decided to withdraw the value-added tax (VAT) on commodities like sugar, chickpea and edible oil.

"VAT on the import of these commodities has been withdrawn as their consumption is higher during the holy month of Ramadan. Considering the holy Ramadan, we took the decision to withdraw the VAT for a temporary period," he said.

The minister said this while briefing reporters after two consecutive meetings of the Cabinet Committee on Economic Affairs and Cabinet Committee on Government Purchase.

Kamal said the decision has been taken so that prices of the essentials can be kept within a tolerable level.

An official of the Finance Ministry informed that in case of soybean oil, 15 percent VAT has been exempted at production stage and 5 percent at consumer level.

Talking to BSS, National Board of Revenue (NBR) Senior Information Officer Syed A Momen said no SRO has been issued yet. NBR has sent the proposal to the Finance Ministry and the SRO will be issued soon after approval of the proposal, he added.

Kamal, however, said the government has taken initiatives to provide commodities through the Trading Corporation of Bangladesh to one crore families across the country.

He mentioned that the government is taking necessary measures to strengthen the TCB as it reaches daily essentials to the people in time.

"We have taken the step so that people do not suffer," he added.

He informed that the operation of TCB is being extended up to the union level so that people can get products easily.

Kamal, however, said people feel the pinch of price hike when local productions as well as international supply are hampered.

He mentioned that the war has pushed up the transportation cost and the suppliers are taking the advantage of the situation which further escalated the prices of the products.

He said TCB will play a more effective role in the coming days.