Cooking oil prices to be reduced on April 1

Cooking oil prices to be reduced on April 1

Cooking oil manufacturers have indicated that they will reduce cooking oil prices effective April 1 following government’s removal of the 16.5 percent Value Added Tax (VAT) it had imposed on the commodity.

The Ministry of Trade and Industry has made the announcement after convening a meeting with players in the industry.

“For transparency purposes, each company will report in writing to the Ministry of Trade and Industry the percentage of how much each company has reduced the price of cooking oil owing to the removal of 16.5 percent VAT and as part of the foregone revenue on input VAT claims from Malawi Government through Malawi Revenue Authority,” the ministry has said in a statement.

It adds that in the event that there is persistent escalation of prices on the market, government will consider allowing more importation of cooking oil to stabilise the prices.

The statement further states that government will continue regulating exports of raw soya beans to ensure adequate availability of the commodity to local processors “for sustainable local value addition, job creation and reduction of imports of crude cooking oil”.

Minister of Finance Sosten Gwengwe announced the removal of VAT on cooking oil in his 2022-23 budget presentation.