In order to ensure a stable supply and affordable prices of edible oil during the holy month of Ramadan, the National Board of Revenue (NBR) in Bangladesh has reinstated the exemption of duties and VAT on edible oils, including canola and sunflower oil. This exemption will remain in place until March 31, according to the NBR. As a result, the import cost of sunflower and canola oils may decrease by 40–50 BDT per liter.
The NBR issued a press release stating, “To stabilize the supply and keep prices affordable during Ramadan, the NBR has reintroduced exemptions for duties and VAT on edible oils. All import duties, regulatory duties, and advance income tax on refined and crude sunflower, canola, soybean, and palm oils have been completely waived until March 31, as per three separate notifications. Additionally, VAT on the local sale of these oils has also been fully waived during this period.”
The announcement also highlighted that the VAT on these products at the import stage has been reduced from 15% to 5%. Therefore, apart from this reduced import VAT of 5%, no other duties or taxes will be applied. These exemptions have been introduced through three new statutory regulatory orders (SROs).
Earlier, exemptions on duties and taxes for soybean and palm oils were provided through notifications issued on October 17 and November 19, which were valid until December 15, 2024. To maintain the stability of the edible oil market and ensure affordable prices for consumers, the NBR has expanded these exemptions to include both crude and refined sunflower and canola oils. Given the rising international prices of soybean and palm oil, these new SROs aim to ensure a consistent supply of these products during Ramadan, with the exemptions valid until March 31.
The NBR explained that by removing customs duties, regulatory duties, advance taxes, and income tax on sunflower and canola oils and reducing VAT, the import cost of these oils will decrease by 40–50 BDT per liter. The NBR believes these measures will increase the availability of edible oils and help maintain affordable market prices for consumers.
Source: News 24
