Sudanese-Arab Company for Oil calls for oil VAT exemption

07:44 PM April, 07 2016

Sudanese Online
Sudan News Agency-Khartoum-Sudan
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Khartoum, April 7 (SUNA) - The Acting Director General of the Sudanese-Arab Oil Company Mohammed Abdul- Bagi urged oil exemption from value-added tax (VAT), which is estimated at 8.5% for its impact on prices, stressing that oil is a strategic commodity concerns all citizens, particularly that its inputs are tax- exempted agricultural goods.
He explained in a statement to SUNA that the domestic consumption of oil was in the range of 240,000 tons per year, revealing that the production capacity of the local factories exceeds one million tons, but the oil production depends on oilseeds productivity. He revealed that due to production declining, the factories currently produce less than 25% of maximum design capacity, calling for increasing the areas cultivated with oilseeds.
He added that the imported inputs of spare parts and manufacturing chemicals have been purchased in parallel exchange rate which increases the production cost, in addition to sanctions imposed on Sudan.
He explained that the company is a joint venture between the Government of Sudan and the Arab Authority for Investment to produce various vegetable oils from peanut and sunflower, revealing that the Oil Unity works at a capacity of 45,000 tons per year and refineries in the range of 18,000 tons per annum, which is packaged in different packages, stated that the products are sold in the local market.

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