The National Board of Revenue (NBR) has imposed a 25% regulatory duty on the export of crude and refined rice bran oil to discourage shipments and boost domestic supply.

The tax administration issued a notification on Sunday regarding the decision, which follows a recommendation made by the Bangladesh Trade and Tariff Commission (BTTC) in December last year, a senior NBR official told the Daily Sun.

According to the NBR statement, edible oil is an essential commodity, with its supply largely dependent on imports. The majority of the domestic demand for edible oil is met through refining operations involving imported crude soybean and palm oil.

Although the country produces between 1.2 and 1.5 lakh tonnes of rice bran oil (both refined and unrefined) annually, most of it is exported to neighbouring countries.

The notification highlighted that this healthy oil has the potential to meet 25% to 30% of the country’s domestic demand for edible oil. Ensuring an adequate domestic supply of rice bran oil is expected to help stabilise the edible oil market.

In light of the Tariff Commission’s recommendations, a regulatory duty of 25% has been imposed to discourage exports and prioritise local supply.

Bangladesh requires around 23 lakh tonnes of edible oil annually, with over one-fourth of this demand being met by rice bran oil. Currently, 20 local mills produce 2.86 lakh tonnes of rice bran oil annually.