VAT exemption on edible oil may be extended by another three months. The National Board of Revenue (NBR) is rethinking the VAT exemption facility at the import level due to the rise in dollar value in the country and the rise in the price of edible oil in the global market.
According to NBR sources, the VAT exemption facility at the local and import level may be maintained till December 31. Notification in this regard may be issued in one or two days.
The VAT exemption facility for edible oil expired on September 30 after a one-time extension. However, the Ministry of Commerce and edible oil traders have demanded that VAT benefits continue throughout the current fiscal year 2022-23.
An official of NBR's VAT department said on condition of anonymity that NBR agrees in principle to maintain VAT exemptions at the import and local levels. However, the dollar crisis and the international market situation will be reviewed. In that case, the VAT exemption facility may be kept for a few months in another phase for the time being.
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