Cabinet asks to cut in import VAT on edible oil, daily essentials

March 14, 2022

PBC News: The cabinet on Monday directed the National Board of Revenue (NBR) to cut down the existing 15 percent VAT on the imports of essential commodities, including edible oil, sugar to keep those prices at a tolerable level.

The cabinet also asked the authorities concerned to execute the directive immediately.

The directive came during an unscheduled discussion on the market situation at the regular cabinet meeting held with Prime Minister Sheikh Hasina in the chair, reports BSS.

The premier joined the meeting virtually from her official residence Ganabhaban, while her cabinet colleagues were present at the meeting room of the Cabinet Division at Bangladesh Secretariat.

Cabinet Secretary Khandker Anwarul Islam briefed the reporters after the meeting at the Secretariat.

He said, “We think this move will have a direct impact on the market.”

Earlier on Sunday, an inter-ministerial meeting at the secretariat took different decisions regarding the prices of daily essential commodities.

At that meeting, it was also decided to reduce the value added tax (VAT)/duty on daily essential commodities including edible oil, sugar.

Another decision was also taken to form a task force in the next couple of days so that unscrupulous traders could not grasp any undue opportunity by increasing the prices of daily essentials.

The cabinet secretary said, “The prime minister has agreed with the issues (decided on Sunday) and given very strong instruction.”

He said VAT on edible oil has been waived at the retail level, and the law minister already signed the SRO.