In view of the increasing trouble of the common people due to expensive edible oil, the government on Wednesday imposed Basic Custom Duty on the import of Palm Oil, Soyabean Oil, and Sunflower Oil. It has been decided to abolish agriculture and cut agriculture cess.
This exemption will be applicable from today and will remain till March next year. With this decision of the government, people will get relief from the increased prices of edible oils during the festive season. Experts say that after this decision of the government, there may be a reduction in oil prices by 10 to 15 rupees per liter.
The Central Board of Indirect Taxes and Customs (CBIC), while issuing a notification related to this decision of the government, said that the reduction in duty will be effective from October 14 and will be applicable till March 31, 2022.
The Agricultural Infrastructure Development Cess (AIDC) on crude palm oil will be 7.5 percent, while for crude soybean oil and crude sunflower oil, the rate will be closer to 5 percent. After the relief given by the government, the effective customs duty on crude varieties of palm, soybean, and sunflower oil will be 8.25 percent, 5.5 percent, and 5.5 percent respectively.
Along with this, the basic customs duty on refined varieties of palm, soybean, and sunflower oil has been reduced to 17.5 percent. Earlier it was 32.5 percent. BV Mehta, executive director of the Solvent Extractors Association of India, said that after the reduction in import duty, the prices of all types of oil will be affected. At the time of the festival, this decision of the government will give relief to the people.
