Bangladesh announces tariff exemption on edible oils, effective until March 31, 2025

The government of Bangladesh has announced a complete exemption of all import duties, regulatory duties and taxes (including VAT) on edible oils until March 31, 2025. The move is aimed at ensuring stable supply and reasonable prices in the market during the upcoming holy month of Ramadan.

The decision, which affects common edible oils such as sunflower oil, rapeseed oil, soybean oil and palm oil, was announced on December 15 through a series of notifications issued by the Bangladesh National Board of Revenue.

“Considering the recent upward trend in soybean and palm oil prices in the international market, the validity period of the new exemption has been extended until March 31, 2025. This will ensure the normal supply of these essential commodities during Ramadan and beyond,” the National Board of Revenue said in a press release.

According to the new policy, all import duties, regulatory duties and advance income tax levied on the import of refined and unrefined sunflower oil, rapeseed oil, soybean oil and palm oil have been completely eliminated. In addition, the VAT levied on these products at the local sales stage has also been completely exempted. Besides, the VAT payable at the import stage has been reduced from 15% to 5%.

This means the only cost of these oils at the import stage is the reduction of 5% VAT, which is expected to reduce the total import cost by about Tk40-50 per litre.

The move is part of the government's efforts to counter the rising prices of edible oils in the international market, which has had an impact on local prices. Soybean and palm oil prices in Bangladesh have risen sharply in recent months, prompting the National Bureau of Statistics to extend the previous tax exemption until the end of March next year. The measures are expected to stabilize the market and ensure uninterrupted supply of edible oils during the holy month of Ramadan.

There is a growing demand for edible oils in Bangladesh, with annual consumption of about 2 million tonnes, of which nearly 1.8 million tonnes is imported, according to government data.