Deadline for VAT exemption on edible oil extended till April 30

The deadline for VAT exemption on the import of soybean oil and palm oil has been extended by four months till April 30, 2023 in order to keep stable the price of such edible oil.

The National Board of Revenue (NB) has issued a notification in this regard on Monday.

Earlier on December 31, 2022, the deadline for VAT exemption on the import of such edible oil ended.

The Ministry of Commerce has recently sent a letter to the National Board of Revenue (NBR) requesting the revenue board to extend the timeframe of VAT exemption on edible oil imports till June 30 this year to keep its price stable during the Holy Month of Ramadan and the Eid Ul Fitr. 

In response, the NBR has taken such decision to extend the timeframe.

Earlier on October 4 last year, the NBR exempted all types of VAT on refined edible oil at production and supply stage to keep the price of soybean oil and palm oil stable considering the price hike of refined and non-refined edible oil in international market.

Prior to that, the NBR on March 16 last year reduced the VAT on non-refined soybean oil and refined palm oil at 5 percent from 15 percent.

Currently, there is an annual domestic demand for 20 lakh tons of edible oil of which 2 lakh tons is met internally while the rest is being met through import of soybean oil and palm oil.

Source: BSS