The National Board of Revenue (NBR) has reduced the Value-Added Tax (VAT) on imported edible oil from 10% to 5% to stabilize the market supply.
The NBR issued a circular to this effect on Wednesday (19 November).
The facility will stay effective till 15 December, reads the circular.
Previously, the NBR had taken similar measures to ensure adequate market supply of essential items such as rice, potatoes, onions, eggs, edible oils, and sugar by issuing VAT exemptions.
Notably, on 17 October 2024, VAT exemptions were introduced for locally refined and unrefined soybean and palm oil. This included a 15% exemption at the production stage and a 5% exemption at the retail level, leaving only a 5% VAT applicable at the import stage.
The NBR believes that this VAT reduction will help maintain edible oil prices at an affordable level for consumers, preventing price hikes. The exemption is set to remain in effect until 15 December 2024.
