The government has decided to withdraw value-added tax (VAT) on edible oil, sugar and chickpeas so that general people can buy essential commodities at affordable prices during Ramadan.
Finance Minister AHM Mustafa Kamal made the remark while briefing reporters after two consecutive meetings of the Cabinet Committee on Economic Affairs (CCEA) and Cabinet Committee on Government Purchase (CCGP).
The state-run Trading Corporation of Bangladesh (TCB) will procure some 1.71 crore liters of soybean oil, 19,500 tonnes of lentil, 10,000 tonnes of chickpeas and 14,000 tonnes of sugar to meet the growing demand of the country ahead of the Holy Month of Ramadan.
On the day, the CCGP approved a total of 13 proposals worth Tk 2,816.14 crore.
The approval came from the CCGP meeting with Finance Minister AHM Mustafa Kamal in the chair on Wednesday.
Purchase's proposals included 4 from the Ministry of Commerce, 3 from the Department of Secondary and Higher Education, 3 from the Ministry of Shipping, 1 from the Prime Minister's Office, 1 from the Ministry of Housing and Public Works and 1 from the Ministry of Civil Aviation and Tourism.
Out of the total financing in the four proposals approved by the procurement committee, the government will provide Tk 1,784.64 crore from its fund while the rest Tk 1,031.49 crore will come from the World Bank.
After the meeting, the Finance Minister said the government has decided to waive value-added tax (VAT) on soybean oil till 30 June.
“In the case of soybean oil, 15 percent exemption has been given at production stage and 5 percent at consumer level. Considering the holy Ramadan, we took the decision to withdraw the VAT for a temporary period,” he said.
Kamal said the decision has been taken so that prices of the essentials can be kept within a tolerable level.
Kamal, however, said the government has taken initiatives to provide commodities through the Trading Corporation of Bangladesh to one crore families across the country.
He mentioned that the government is taking necessary measures to strengthen the TCB as it reaches daily essentials to the people in time.
“We have taken the step so that people do not suffer,” he added.
He informed that the operation of TCB is being extended up to the union level so that people can get products easily.
Kamal, however, said people feel the pinch of price hike when local productions as well as international supply are hampered.
He mentioned that the Ukraine war has pushed up the transportation cost and the suppliers are taking the advantage of the situation which further escalated the prices of the products.
He said TCB will play a more effective role in the coming days.
A National Board of Revenue (NBR) official said no SRO has been issued yet. NBR has sent the proposal to the Finance Ministry and the SRO will be issued soon after approval of the proposal, he mentioned.