The Government of Bangladesh has announced complete exemption of all import duties, regulatory duties, and taxes, including VAT, on edible oils until March 31, 2025. It is aimed to ensure a stable market supply and affordable prices during the upcoming holy month of Ramadan. The decision, which affects popular edible oils such as sunflower, canola, soybean, and palm oil, was made public through a series of notifications issued by the National Board of Revenue (NBR) on December 15.

"Considering the recent upward trend in international market prices of soybean and palm oil, the validity of the new exemptions has been extended until March 31, 2025," the NBR stated in a press release. "This will ensure a regular supply of these essential products during the holy month of Ramadan and beyond."

Under the new policy, all import duties, regulatory duties, and advance income taxes on the import of refined and unrefined sunflower, canola, soybean, and palm oil have been completely removed. Additionally, the value-added tax (VAT) imposed at the local sale level on these products has been fully exempted. Furthermore, the VAT payable at the import stage has been reduced from 15% to 5%.

This means that the only remaining cost on these oils at the import stage will be the reduced 5% VAT, which is expected to lower the overall import costs by around Tk 40-50 per liter.

The move comes as part of the government's efforts to address rising prices of edible oils in the international market, which have been impacting local prices. In recent months, Bangladesh has experienced a significant uptick in the prices of soybean and palm oil, prompting the NBR to extend the previous duty exemptions until the end of March next year. These measures are expected to stabilize the market and ensure an uninterrupted supply of edible oils during Ramadan, a peak consumption period for these products.

Bangladesh has a growing demand for edible oils, with annual consumption reaching approximately 2 million tonnes, of which nearly 1.8 million tonnes are imported according to government data.

“The complete withdrawal of customs duties, regulatory duties, and taxes on sunflower and canola oil, along with the VAT reduction, will help lower the import cost of these oils by Tk 40-50 per liter," said an official from the NBR. "These measures are aimed at increasing the supply of edible oils in the market, ensuring that the prices remain within a tolerable range for the general public.”