In an effort to stabilise the rising prices of edible oils, a proposal has been made to exempt the existing 5% import duty on soybean and palm oil and to waive value-added tax (VAT) at the business level.
The proposal was discussed at a meeting on Tuesday between Finance and Commerce Adviser Dr. Salehuddin Ahmed and leaders of the edible oil industry at the Ministry of Commerce.
The Bangladesh Vegetable Oil Refiners Association called for the price adjustments after significant hikes in international markets. According to industry reports, the price of unrefined soybean oil has surged by 14.8%, while RBD palm oil prices have jumped by 18.68% globally.
The last adjustment to domestic oil prices, aligning them with the international market, occurred on 18 April 2024.
To mitigate the impact on consumers and keep prices stable, the oil industry is urging the government to remove the 5% import duty and waive all VAT at the business stage.
The proposal will be sent to the National Board of Revenue (NBR) for review, with the final decision resting in the hands of the revenue authority.
Commerce Ministry Secretary Selim Uddin, NBR Chairman Abdur Rahman, Bangladesh Trade and Tariff Commission Chairman Dr. Moinul Khan, and representatives of the edible oil industry were present at the meeting.
