The National Board of Revenue (NBR) has introduced VAT exemptions on several essential products, including biscuits, salt, mustard oil, flour, LP gas, and more. These exemptions apply at different levels of the supply chain—some at the manufacturing stage and others at the merchant level.
In a notification issued on Monday, the NBR confirmed that rapeseed oil, colza seed oil, and canola oil will be exempt from VAT until June 30, 2025. Additionally, mustard oil will be exempt at the production stage with no specified time limit.
The VAT exemption extends to products produced locally, including biscuits, salt, flour, semolina, chili powder, coriander, turmeric, ginger, rice bran oil, sunflower oil, and others. LPG and natural gas are also VAT-exempt at the merchant level, subject to certain conditions. However, VAT exemption does not apply to those who import and sell these goods directly to consumers.
To qualify for these VAT exemptions, businesses must meet specific requirements, including VAT registration, issuance of invoices, proper maintenance of records, and timely submission of monthly VAT returns.
This initiative aims to reduce the financial burden on consumers, particularly during the ongoing festive season.
Bd-pratidin English/ Jisan
