The government has imposed a 1% withholding tax at source on all types of edible oil, including soybean, sunflower, palm, and corn oil — a category that previously had no such tax.
The National Board of Revenue (NBR) issued a notification signed by Member (Tax Policy) A.K.M. Badiul Alam on Monday announcing the new measure.
According to the notification, the 1% withholding tax will apply to refined and unrefined soybean oil, the import of unrefined edible oil through VAT-registered refineries, sunflower seeds and oil, as well as corn oil.
The move comes after the government reduced palm oil prices last month in response to a fall in global market rates.
In mid-August, the price of palm oil was lowered by Tk 19 per liter to Tk 150 from the earlier Tk 169. However, the price of soybean oil remains unchanged at Tk 189 per liter for bottled oil.
