Commerce ministry rules out edible oil price hike
State Minister for Commerce Ahsanul Islam Titu on Tuesday said edible oil prices would not be hiked to January levels despite the re-imposition of 15% VAT on the food commodity, suggesting oil companies would have to bear the extra cost.
Edible oil producers and suppliers enjoyed reduced VAT facility during 7 February to 15 April, as the National Board of Revenue (NBR) sought to tame prices ahead of Ramadan. Under the low VAT scheme, the NBR had cut VAT on import of soybean and palm oil to 10% from the usual 15% and exempted the tax at production and trading stages.
Due to the expiration of the VAT reduction facility, edible oil companies want to raise the consumer prices back to January levels, meaning a hike of Tk10 per litre.
In a letter sent to the commerce ministry Monday, the Bangladesh Vegetable Oil Refiners’ and Vanaspati Manufacturers’ Association said they want to refix the retail price of bottled soybean oil to Tk173 per litre, five-litre cans to Tk845 and loose palm oil to Tk132 per litre.
In response, the state minister for commerce has said the ministry would review the situation, but that there is no scope to return to previous higher prices.
At a press conference held at Dhaka Reporters Unity on Tuesday, Ahsanul Islam Titu said the tariff commission would consider the import costs of raw materials for businesses. In the future, consumer prices would be adjusted in line with international rates, he further added.
Source Link : https://www.daily-sun.com/post/743769
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