Dhaka, Feb. 17 -- 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 t...