The National Board of Revenue (NBR) reduced the value-added tax (VAT) on soybean oil imports from 10% to 5% effective until December 15, as stated in a circular on November 20. This measure aims to stabilize edible oil prices in the local market. Previously, on October 17, the NBR had granted a 15% tax exemption on local production and a 5% exemption on the supply of refined and unrefined soybean and palm oil. Recent months have seen similar tariff reductions on essentials such as rice, potatoes, onions, eggs, and sugar to mitigate inflationary pressures.
Low and middle-income earners are grappling with persistent inflation, which has remained above 9% since March 2023. In October, inflation surged to a three-month high of 10.87%, driven by sharp increases in food prices, particularly rice and vegetables, according to the Bangladesh Bureau of Statistics. The VAT cut aims to ease the strain on consumers.
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