All import duties on crude varieties of palm oil, soyabean oil, and sunflower oil have been scrapped till March 31, 2022, the Central Bureau of Indirect Taxes and Customs has said.
Moneycontrol had been the first to report last month that the government is planning a series of further duty cuts on edible oil imports before the festive season, as retail prices continue to remain high.
The latest move will slash the effective import duty on crude palm oil, crude soya oil, and crude sunflower oil from 24.75 percent till now to nil. However, duties on refined soya oil and refined sunflower oil still remain in place.
Edible oil duties had been first cut in June. Subsequently, basic customs duties were cut in August and September over the space of less than a month. However, retail prices have continued to remain high. As a result, the cut-off date for ending duty cuts, September 30, may have to be extended, officials had said last month.
Sources had said that two more duty cuts would be announced before the new crop arrives in November. They had added that the government has kept enough policy room for two more cuts, based on existing price and supply trends.
Agri cess lifted
The latest push to reduce prices also saw the lifting of an additional agri cess that had been placed on these items earlier this year.
‘Agriculture Infrastructure and Development Cess’ (AIDC), introduced in the latest budget, and in effect from February 2021 has been levied which would be collected on specific imported and excisable goods.
The main purpose for levying AIDC is to finance agriculture, infrastructure, and other development expenditures, while also conserving and processing agricultural output efficiently. AIDC shall be levied on the import of goods specified in the first schedule of the Customs Tariff Act at a rate not exceeding the customs duty rate.
This includes the import of goods like fruits, pulses, certain alcoholic beverages, coal, cotton, fertilizers, gold, silver, etc. The said cess is also levied as an additional duty of excise on the manufacture of petrol and high-speed diesel.
The cess will now not be charged on the import of these products till March 31, 2022.
Reference: https://www.moneycontrol.com/news/trends/current-affairs-trends/govt-scraps-import-duties-on-edible-oils-until-march-2022-removes-agri-cess-7578061.html
