TCB seeks procurement provider VAT exemption for suppliers

The Trading Corporation of Bangladesh (TCB) has requested an exemption from procurement provider (withholding) VAT on locally procured goods supplied under its government-subsidised programmes, sources said.

In an official letter dated February 10, 2026, TCB stated that it distributes essential commodities to around 10 million low-income families nationwide at subsidised prices, following government directives.

The items include edible oil, lentils, sugar, chickpeas and onions, particularly during Ramadan and other special occasions.

The letter noted that while manufacturers of edible oil and sugar are exempt from procurement provider VAT, general traders supplying goods to TCB are required to pay 10 per cent VAT at the procurement stage.

The corporation argued that this creates an uneven competitive environment between traders and producers, discouraging broader participation in tenders.

Currently, TCB is distributing roughly 240 million litres of soybean oil, 0.24 million tonnes of lentils, 0.12 million tonnes of sugar and 10 thousand tonnes of chickpeas under its subsidy programme.

The agency said the imposition of procurement provider VAT increases procurement costs, which could affect both the scale of distribution and government subsidy expenditure.

Emphasising its role as an autonomous state-owned organisation operating entirely with government funds, TCB said its aim is to stabilise the market and support low-income consumers.

To ensure equal participation of suppliers and maintain competitive pricing, the corporation has requested authorities to grant VAT exemption for all participating suppliers.

The matter has been placed before the National Board of Revenue (NBR) for necessary action, a source added.

Meanwhile, TCB will launch its Ramadan sales drive, selling five key essential commodities at subsidised prices in nine metropolitan areas from today (Tuesday).

The products -- edible oil, sugar, lentils, chickpeas and dates -- will be sold from 450 mobile trucks.

Under the programme, edible oil will be sold at Tk 115 per litre, sugar at Tk 80 per kg, lentils at Tk 70 per kg, chickpeas at Tk 60 per kg, and dates at Tk 160 per kg.

Each consumer can purchase a maximum of two litres of oil, one kg of sugar, two kg of lentils, one kg of chickpeas, and one kg of dates.

Regular sales for family card holders will continue as usual, with monthly quantities and prices of edible oil, sugar and lentils unchanged.

For Ramadan, chickpeas and dates will also be sold at subsidised rates to cardholders.

The mobile truck programme will run for 20 days from February 17 to March 12 (excluding Fridays and public holidays).

Each truck is expected to serve around 400 low-income consumers daily, with about 23,000 tonnes of goods distributed through the programme, benefiting nearly 3.5 million people, TCB said.

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