NBR Revokes VAT Exemptions for Essential Food Items

Industry: Commodity, Consumer & Retail, Food
Economic Tag: Vat & Tax

The National Board of Revenue (NBR) has removed VAT on various edible oils, including mustard, rapeseed, canola, and rice bran oil, along with other essential commodities, to ease market pressure. VAT exemptions will apply at the production stage for rapeseed, colza seed, and canola oil until June 30, 2025, while mustard oil gets an indefinite exemption. Additionally, VAT has been waived for biscuits, salt, flour, semolina, and key spices, as well as liquefied petroleum gas (LPG) and natural gas under specific conditions. However, importers selling directly to consumers will not benefit from the exemption. The NBR aims to reduce costs for consumers and stabilize the edible oil market amid a projected decline in soybean oil consumption from 9.85 lakh tons to 9 lakh tons this marketing year, ending in June.

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