Amid a supply crunch seeing soybean oil bottles going off the shelves of shops, Bangladesh’s top trade body has urged the government to withdraw the value-added tax (VAT) on import of the essential commodity.
"In light of the increasing price of edible oils on the global market, it is necessary to lift VAT for at least the next three months," Md Jasim Uddin, the president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) said on Monday.
The price hike in the global market would reach Bangladesh by May or June, according to him.
“There’s no immediate effect on the local market now,” Jasim said before adding that the mill owners must take measures to keep the price stable.
He has also urged traders to stop stockpiling goods, so there is a regular flow of supply in the local markets with fixed prices.
"It is unacceptable if the price of unpackaged edible oil is higher than that of packaged and bottled oil. We will not favour those who opt for this unjust path," Jasim Uddin added.
“We have enough oil stored for Ramadan next month. So, there should not be a problem with the supply,” he added.
According to the Bangladesh Trade and Tariff Commission, the government imported over 2.77 million tonnes of edible oil in 2021 against an annual demand of 2 million tonnes and imports continued in 2022.
After a meeting with relevant agencies on stocks, supplies, imports and the price situation last week, Commerce Minister Tipu Munshi said the stock of oil and other food products in Bangladesh was sufficient.
“The Trade and Tariff Commission set those prices based on a number of indices – the landing cost, the price per bottle, and the appropriate level of profit were all set. Our directives on this issue must be followed. We’ll not accept any malpractice,” he said then, vowing action against unscrupulous traders.
