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The concessional VAT facility on edible oil imports was
extended for another three months. With 5 percent VAT, refined and unrefined
soybean and palm oil can be imported till September 30.
Earlier in March, VAT on imported and refined soybean oil
and palm oil was reduced from 15 percent to 5 percent. The National Board of
Revenue (NBR) then announced that this opportunity would continue till June 30.
Now the NBR has decided to extend this facility till September 30. NBR sources
said that a notification in this regard will be issued soon.
The price of edible oil has been rising in the local market
for the last few months. Oil prices have also risen in the international market
due to the Russian attack on Ukraine. In this context, in February, the
Ministry of Commerce sent a letter to the National Board of Revenue (NBR)
recommending the withdrawal of VAT on imports and at the local level. The same
demand was made by the traders. In response to the demands of various quarters,
VAT was reduced to 5 percent at the import stage.
At present refined soybean oil and refined palm oil do not
have all value added tax (VAT) or VAT at the local production and business
level.
According to the Ministry of Commerce, the country has an
annual demand of 2 million tons of edible oil. Locally produced 2 lakh tonnes,
the remaining 18 lakh tonnes have to be imported.
|Source: Online/SZK
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