NBR halves VAT to cool off edible oil prices

The National Board of Revenue (NBR) today reduced the value-added tax (VAT) on imports of soybean oil from 10 percent to 5 percent to maintain adequate supply and contain prices in the local market.

The facility will be effective till 15 December, according to an NBR circular.

The revenue board believes the VAT exemption will keep edible oil prices at a bearable level.

On October 17, to keep edible oil prices within reach of common people, a 15 percent tax exemption was granted at the local production level and a 5 percent tax exemption at the local business level in the supply of refined and unrefined soybean and palm oil.

In recent months, the NBR has reduced tariffs on imported essentials such as rice, potatoes, onions, eggs, edible oil and sugar.

Low and middle-income earners in the country have been bearing the brunt of persistent inflation since March 2023, with overall inflation hovering above 9 percent.

In October this year, inflation hit a three-month high of 10.87 percent, driven by soaring food prices, particularly for rice and vegetables, according to the Bangladesh Bureau of Statistics.