The government on Thursday extended the reduced 5 percent value-added tax (VAT) on edible oil until December 31, 2022.

The extension will be effective from the date of the earlier notice in this regard that expired on September 30, said a notification issued by the Finance Ministry.

The National Board of Revenue (NBR) slashed the VAT on soybean oil and crude palm oil from 15 percent to 5 percent during imports and exempted the VAT at the production and trading stages in March this year.