Proposal to reduce 5pc duty on import of edible oils

Leaders of the edible oil traders have proposed to reduce 5 percent of import duty on soybean and palm oils.

The Bangladesh Vegetable Oil Refiners Association made the proposal during a meeting at the Ministry of Commerce, chaired by Adviser for the Ministries of Finance and Commerce Dr Salehuddin Ahmed at the Commerce Ministry conference room in the city on Tuesday.

They proposed to fix it to 10 percent from the existing 15 percent along with waiver all value-added tax (VAT) imposed at the production and business stages to stabilise the edible oil prices in the market.

The last price adjustment for soybean and palm oil was made on 18 April 2024. Over the past few months, global prices for these oils have increased, with crude soybean oil rising by 14.8 percent and RBD palm oil by 18.68 percent.

To prevent further price hikes at the local level, the proposal suggested reducing the 5 percent import tax and removing all taxes at the production and business stages.

The association had previously applied to the Ministry of Commerce for a price adjustment. The Ministry of Commerce will forward the proposal to the National Board of Revenue (NBR), which will then decide on the necessary course of action.