Government reintroduces 20% regulatory duty on rice bran oil exports

New duty follows removal of export control in national budget

The interim government has reimposed a 20 percent regulatory duty on rice bran oil exports to stabilise the domestic cooking oil market.

The National Board of Revenue (NBR) issued the notification for the new duty on Wednesday.

Earlier in February, the NBR had said domestic production of rice bran oil could meet 25 to 30 percent of Bangladesh’s internal demand.

At that time, a 25 percent regulatory duty was imposed on exports to ensure adequate local supply and maintain market stability.

The regulatory duty lapsed following the announcement of the new fiscal year budget, which removed such provisions.

Following the imposition of a 1 percent advance tax on imported soyabean, sunflower, palm, and corn oil on Tuesday, the NBR took the decision to regulate rice bran oil exports.

The government had reduced the price of palm oil in the local market to Tk 150 per litre in mid-August after international prices fell. Previously, the price had been Tk 169 per litre. Soybean oil, however, remained at Tk 189 per litre.

On Apr 15, the government fixed the prices of soyabean and palm oil. Soyabean oil’s price was increased by Tk 14 per litre to Tk 189.

Earlier, on Dec 9, the price of bottled soyabean oil had been raised to Tk 175 per litre. Following traders’ requests, the advance tax on soybean oil imports was withdrawn the next day.

The NBR also extended the same facility to crude palm oil imports.