Saturday, 18 September, 2021

High tax hurts palm oil market in Bangladesh

Say experts at an international webinar

High tax hurts palm oil market in Bangladesh
  • Staff Correspondent
  • 1 September, 2021 12:00 AM
  • Print news

Speakers urged the government to review the tax structure for crude palm oil import in Bangladesh.

The said the edible vegetable product was experiencing discrimination in market against soya bean oil due to a higher import tariff.

Addressing an international webinar on Tuesday, the experts tried to focus on health benefits of the palm products comparing other edible oils.

Council of Palm Oil Producing Countries (CPOPC) orgnanised the discussion titled “Edible Oil & Fat Consumption Trend in Bangladesh”, in association with global strategy agency Apco.

Malaysian Palm Oil Council regional manager Fakhrul Alam was the key speaker.

Apco deputy managing director Yash Kansal, Indonesian IBP University faculty Puspo Edi Giriwono and Bangladesh Edible Oil Limited senior marketing manager Faisal Mahmud, among others, participated in the discussion.

In his presentation, Fakhrul Alam, a market expert, said the consumption of palm oil has declined during the last 20 years “due to the discriminatory policy and law” for the import of edible oil.

“In Bangladesh, the importers of soya bean oil pay only 15 percent VAT (value-added tax) while this is 37 percent for the palm oil,” he pointed out.

“However, Bangladesh shows an increasing trend in palm oil import, which is the highest among the developing countries,” he added.

Seafast Director Dr Puspa Edi Guriwono said, “The palm oil is a good source of vitamins – A and E - apart from it having nutritious benefits for pediatric health.”

BEOL official Faisal Mahmud said, “There has a negative concept about palm oil in Bangladesh. Lack of branding is another drawback in the growth of product’s market in the developing countries.”

The total consumption of oils and fats was 3.04 million tons in 2019 which is about 2.97 percent higher compared to 2018.

An average of per capita consumption of oils and fats is seen approaching 18.7 kilogram, according to the Oil World data.