The VAT rate on edible oil has reverted back to 15% after a relaxation for six and a half months.
Earlier this year, the government instated a 5% VAT levy at the import level instead of 15% to keep the price down. However, that concession expired Saturday (1 October).
The facility was extended to edible oil importers and traders till 30 September in a National Board of Revenue (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 14 March, 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 imposed on import of edible oil was reduced to 5% till 30 June.
Later, in another notification on 3 July, the VAT exemption period was extended to 30 September.
Although that period expired last Friday, NBR has not issued any new notification for extension.