Taxes on import of edible oils cut move aimed at reducing domestic prices
Latest Import Duty reduction expected to yield consumers benefits worth Rs. 1,100 crore
The Government has cut taxes on the import of various edible oils, in order to control domestic prices of these commodities. Import duty on crude palm oil has been reduced from 10% to 2.5%, while that on crude soyabean oil and crude sunflower oil from 7.5% to 2.5%. Import duty on refined palm oils, refined soyabean oil and refined sunflower oil has been cut from 37.5% to 32.5%.
The duty cuts are effective since today, September 11, 2021. They are part of various efforts which the government has been taking to control the rising price of edible oils, especially since February 2021.
By reducing the landed cost of edible oils, these duty cuts are expected to reduce the domestic prices of these commodities. This will thus help ensure the availability of these commodities to consumers, at fair prices.
As per the latest notification, the previous and present rates of import duties is as given below.
Along with reducing import duties, the agricultural cess for crude palm oil has been raised from 17.5% to 20%.
The current reduction in import duties on edible oils is worth Rs. 1,100 crore for the full year. Including earlier duty cuts, benefits worth Rs. 4,600 crore are expected to be passed on to the consumers, in terms of duties given up by the Government.
Some of the recent efforts taken by the government to control price rise are as given below.
Rationalization of Import Duty on crude palm oil
Import duty on crude palm oil was reduced to 10%, with an effect from 30.06.2021.
Making Import of Refined Palm Oils Easier
Import policy for refined palm oils was amended from “restricted” to “free”, with effect from 30.06.2021, till 31.12.2021.
Reduction of import duties on various edible oils
Import duty on Crude Soyabean Oil and Crude Sunflower Oil was reduced to 7.5% and that on Refined Soyabean Oil and Sunflower oil to 37.5%, with effect from 20.08.2021.
Import Facilitation at various ports
Imports are being facilitated at various ports, by Customs, FSSAI, PP&Q, DFPD and DoCA.
Special measures for speedy clearances of import consignments in wake of COVID-19
A Committee is working in order to regularly review and speed up clearance of import consignments, which have been delayed due to COVID-19. This has helped reduce the average dwell time for clearances of edible oils consignments to 3.4 days.
