The government has reduced the Value Added Tax, or VAT, on the imports of cooking oil by 10 points to 5 percent as part of its efforts to keep the prices of soybean and palm oil under control.

The National Board of Revenue or NBR said in a notice on Wednesday that the waiver will remain in force until Jun 30 as the authorities struggled to cool off the market ahead of Ramadan and amid the Ukraine-Russia war that has triggered a hike in prices on the global market.

With the Islamic month of fasting set to begin in the first week of April, the authorities on Monday waived VAT on production and sales of cooking oil, but businesses and officials said the decision would have little effect on the market.

According to the government, Bangladesh imports 1.8 million tonnes of cooking oil against an annual demand of 2 million tonnes. The demand is 150,000 tonnes per month, but it rises to 250,000 tonnes during Ramadan as deep-fried delicacies dominate Iftar meals after fasting.