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Government withdraws VAT on edible oil, sugar and gram VAT | Cooking Oil
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Government withdraws VAT on edible oil, sugar and gram

Bangladesh Live News | @banglalivenews | 10 Mar 2022, 08:09 pm

Dhaka, March 10: VAT on edible oil, sugar, gram has been revoked to keep prices of essential commodities at a tolerable level. Finance Minister AHM Mustafa Kamal told reporters after a meeting of the Cabinet Committee on Procurement of the Secretariat on Thursday.

The finance minister said, "In order to keep the prices of goods affordable, we have lifted the items on which VAT was levied. The required amount of cooperation from the government is being done. VAT on edible oil, sugar and gram has been revoked."

According to the finance ministry, 15 per cent VAT has been waived on soybean oil at the commodity level and 5 per cent at the consumer level. This decision will remain in force till June 30.

AHM Mustafa Kamal said, "People suffer when their own production is low. Again, the things that we import, the things that are out of our hands, the price goes up because of many parameters. Even then the buyer suffers."

"The war that is taking place now is one of the reasons for the rise in prices," he said. LC prices, transportation costs - these go up. Those who import also try to seize the opportunity, which leads to higher prices.

The finance minister said the government marketing agency TCB was being strengthened along with the withdrawal of VAT to keep prices of essential commodities at a tolerable level.

He said, "The initiative that is being taken this time is to strengthen TCB. If the syndicate has any goods in the market, they will not get that opportunity by trying to increase the price if it is properly distributed in the market through TCB."

He further said that one crore households across the country will be provided low cost daily necessities through TCB.

Earlier, the Commerce Ministry had written to the NBR to withdraw 15 percent VAT on edible oil. Meanwhile, a 10 percent rebate on import duty was announced on February 6 to keep sugar prices stable ahead of Ramadan.

According to an importer, edible oil currently has 15 per cent VAT at the import stage, 15 percent at the production stage and 5 percent at the sales stage. Sugar has a total VAT of 65 percent