Cooking oil prices may go up again03 October 2022
Staff Reporter :
The National Board of Revenue (NBR) has reinstated the value added tax (VAT) rate on cooking oil from 5% to 15% after six and a half months.
Earlier this year, the government imposed a 5% VAT levy at the import level, instead of 15%, to keep the prices down. However, the concession expired on Saturday.
Stakeholders fear that the importers and traders will use this 10% hike as an excuse to increase the prices again. The facility was extended to cooking oil importers and traders till September 30 in an NBR notification issued earlier in March. In March, the price of soybean oil in the local market started increasing and, at one point, shot up over Tk200. Currently, the price is Tk192.
On March 14, the NBR issued a notification waiving 15% VAT at the production level and bringing it down to 5% for soybean and palm oil.
Two days later, the 15% VAT was reduced to 5% till June 30.
Later, another notification issued on July 3 extended the VAT exemption period to September 30.
Although the period expired last Friday, NBR has not issued any new notification for an extension.