Government slashes custom duty and agri-cess on edible oils
The effective customs duty on crude varieties of palm, soyabean and sunflower oil will be at 8.25% and 5.5% each (soyabean and sunflower oil)
In a move to stabilise prices and increase domestic availability during the festive season, the government on October 13 scrapped the basic customs duty and agri-cess on crude varieties of palm, soyabean and sunflower oil until March 2022. In a notification, the Central Board of Indirect Taxes and Customs (CBIC) said that the duty cuts will be effective from October 14th 2021. The Agri Infrastructure Development Cess (AIDC) on crude palm oil will be at 7.5%, while the rate will be at 5% for crude soyabean oil and crude sunflower oil.
Basic customs duty slashed to 17.5%
After all the cuts, the effective customs duty on crude varieties of palm, soyabean and sunflower oil will be at 8.25% and 5.5% each(soyabean and sunflower oil).
Adding to that, the basic customs duty has been slashed to 17.5% each from the current 32.5% on refined varieties of sunflower, soyabean, palmolein, and palm oil.
According to BV Mehta, Executive Director, Solvent Extractors Association of India, the government has slashed import duties on edible oils because of the festive season and the retail prices in domestic markets.