The National Board of Revenue (NBR) of Bangladesh has introduced a 20% regulatory duty on rice bran oil exports in an effort to stabilize the local market. The NBR issued an official directive on Wednesday, signed by Chairman Md Abdur Rahman Khan, to implement the newly imposed duty.
Over the past few months, the Bangladesh Rice Bran Oil Mills Association had urged the government to reinstate the duty to maintain an adequate domestic supply. As stated in the NBR’s notification, the duty is enforced under the Customs Act 2023 and applies to both refined and crude forms of rice bran oil.
Under the updated regulation, rice bran oil exporters are required to pay a 20% regulatory duty on both refined and crude varieties of the product. The move comes after the earlier 25% duty expired in July.
“Regulatory duties typically expire at the end of a fiscal year. Based on requests from industry stakeholders, the NBR has decided to reintroduce it,” an NBR official said.
The decision follows just a day after the NBR imposed a 1% advance tax on imports of soybean, sunflower, palm, and corn oils.
Over the last ten years, rice bran oil production and retail sales in Bangladesh have grown substantially. The industry took off in 2011 when Rashid Oil Mills Limited, located in Ishwardi, Pabna, launched rice bran oil under the brand name ‘White Gold.’ Since then, numerous major companies have joined the sector.
Bangladesh’s annual edible oil demand is estimated at 22 to 23 lakh tons. To meet this demand, approximately 90% is covered through imports and local refining of crude soybean and palm oil.
The Bangladesh Rice Bran Oil Mills Association reports that the country currently hosts 21 rice bran oil mills, capable of producing only 4.53 lakh tons annually.
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