In a significant move to ease the financial burden on consumers, the National Board of Revenue (NBR) has announced VAT exemptions on a variety of essential goods, including biscuits, salt, mustard oil, flour, LP gas, and more.
This announcement was made through a notification released today, Monday.
The exemption will apply to several oils, such as rapeseed oil, colza seed oil, and canola oil, at the production stage.
This VAT relief will remain in place until June 30, 2025. Notably, there will be no expiration date for the VAT exemption on mustard oil, which will continue at the production level without a set end date.
Apart from these oils, the VAT exemption will also cover a range of locally produced food items, including biscuits, salt, flour, semolina, ground chili, coriander, turmeric, ginger, rice bran oil, sunflower oil, rapeseed oil, colza seed oil, canola oil, and pulses like lentils.
For businesses involved with LP gas and natural gas, the VAT exemption will also be available, but only under specific conditions.
Importantly, businesses that import these products and sell them directly to consumers will not be eligible for the exemption.
To take advantage of the VAT exemption on these goods, businesses must meet certain requirements.
These include VAT registration, issuing invoices, maintaining necessary registers, and submitting monthly VAT returns.
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