VAT on edible oil withdrawn at retail level

The government today withdrawn Value Added Tax (VAT) on all types of edible oil at the retail level to try to rein in the soaring prices of the essential commodity.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 will be effective from Monday. Traders will get this facility till next June 30.

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Finance Minister AHM Mustafa Kamal told a reporter after a government procurement meeting that the VAT has been withdrawn to control the market prices of edible oil.

Later, the finance minister said that the tariffs on essential commodities including edible oil, sugar and peas will be withdrawn soon.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 per cent VAT on soybean at production level and 5 per cent at the consumer level.

Commerce Minister Tipu Munshi at a press briefing at his secretariat on the occasion of consumers’ rights day said that VAT on edible oil imports will be reduced by 10 per cent and VAT at the consumer level by 5 per cent.

At the same time, 15 per cent VAT will be withdrawn at the edible oil production level, he said.