The National Board of Revenue (NBR) has removed 4 per cent advance tax on import of refined palm oil in order to cut working capital pressure on processors and contain prices of the essential cooking ingredient during Ramadan.
The NBR took the decision today a week after the revenue authority exempted the advance tax (AT) on crude soybean and palm oil.
The decision of the withdrawal comes when prices of edible registered fresh spikes in the domestic market because of rising international prices, supply rationing by processors and wholesalers.
The price of loose super palm oil rose 4 per cent to Tk 110-Tk 115 per litre yesterday from Tk 107-Tk 110, according to the Trading Corporation of Bangladesh. Prices of soybean oil also rose.
Processors earlier said the removal of AT will alleviate the need for working capital and interest rate burden for refiners.
The revenue authority introduced the AT on imports from fiscal 2019-20 aiming to ensure that firms properly keep records of their sales and purchases.
It said the tax was adjustable with the total payable value-added tax, meaning the money paid in excess would be refundable.
A good amount of refund claims got stuck earlier because of procedural bottlenecks.
However, officials said the process of refunding excess amounts has been started.