The government has issued a Communique to reduce VAT on imports of soybean oil and crude palm oil from 15 per cent to 5 per cent. The National Board of Revenue (NBR) issued the notification on Wednesday (March 18) afternoon.
“Imports of refined soybean oil, crude soybean oil, crude palm oil and other refined palm oil imports have been reduced from 15 per cent to 5 per cent,” the circular said.
Earlier on Tuesday (March 15), the NBR withdrew 10 percent VAT on imports. Earlier on Monday (March 14), the company also withdrew VAT on edible oil at the consumer and production levels.
The NBR notification issued on Monday said, “All VAT on local production and trade of refined soybean oil and refined palm oil has been revoked and this opportunity will remain in force till June 30.”
Meanwhile, the Ministry of Commerce sent a letter to the NBR after publishing the notification. Considering the upcoming holy month of Ramadan and the purchasing power of the people, the letter requested for repeal of VAT not only in the production and business stage, but also in all stages of edible oil including import.
Subsequently, VAT on refined soybean oil, crude soybean oil, crude palm oil and other refined palm oil imports was reduced from 15 per cent to 5 per cent through notification.