Basic customs duty abolished on crude palm, soybean, sunflower oil, agriculture cess also cut

New Delhi, October 13 (Agency)

The government on Wednesday cut agricultural cess on crude varieties of palm, soybean and sunflower oil till March 2022. Apart from this, agriculture cess has also been cut on them. This is a move that will help reduce the prices of edible oils and increase domestic availability during the festive season. The Central Board of Indirect Taxes and Customs (CBIC) in a notification said that the duty cut will be effective from October 14 and will remain in force till March 31, 2022. Crude palm oil will now attract an Agricultural Infrastructure Development Cess (AIDC) of 7.5 per cent, while it will be 5 per cent for crude soybean oil and crude sunflower oil. After this reduction, the effective customs duty on crude varieties of palm, soybean and sunflower oil will be 8.25 per cent, 5.5 per cent and 5.5 per cent respectively. Besides, the basic customs duty on refined varieties of sunflower, soybean, palmolein and palm oil has been reduced to 17.5 per cent from the existing 32.5 per cent. BV Mehta, executive director, Solvent Extractors Association of India, said, “The government has reduced import duty on edible oils due to increase in retail prices in the domestic market and festive season.”

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