Bangladesh sets 1% tax at source on cooking oil imports

The government says the decision to reduce palm oil prices comes as adjustment to global market trends

The interim government has imposed a 1 percent tax at source on the import of cooking oil, including soyabean, sunflower, palm, and corn oil.

According to a new notification from the National Board of Revenue (NBR) on Monday, the tax applies to both refined and crude soyabean oil, crude edible oil imported through VAT-registered refining industries, sunflower seeds, and corn oil.

Previously considered essential goods, these items were exempt from any source tax on imports.

In a separate move, the government announced a price reduction for palm oil in the domestic market.

Due to a fall in international prices, the price of palm oil was lowered by Tk 19 per litre, bringing the price down to Tk 150, from Tk 169. However, the price of soyabean oil remains unchanged at Tk 189 per litre.

Earlier, on Apr 15, the price of soyabean and palm oils was revised, increasing soyabean oil by Tk 14 per litre to Tk 189. The last price adjustment was made on Dec 9, setting soyabean oil at Tk 175 per litre.

The NBR has also withdrawn the advance tax on imported soyabean oil and crude palm oil following traders’ requests.