The government has cut the basic customs duty on refined palm oil to 12.5 per cent from 17.5 per cent as part of efforts to increase domestic supplies and bring down the retail prices of the cooking oil. The revised Basic Customs Duty (BCD) will be effective till the end of March 2022.
The latest move also comes on a day when the government decided to allow traders to import refined palm oil without licence for one more year till December 2022 and markets regulator banned launch of new derivative contracts of crude palm oil and a few other agricultural commodities. All these measures have been put in place at a time when inflation is ruling high.
The Central Board of Indirect Taxes and Customs (CBIC) has issued a notification which ‘seeks to reduce BCD on refined palm oil and its fractions from 17.5 per cent to 12.5 per cent till March 31, 2022’. The new rate is effective from December 21, 2021.
The Solvent Extractors' Association of India (SEA) Executive Director B V Mehta has said that with reduction in the duty, the effective levy on both refined palm oil and pamoline will come down to 13.75 per cent, including social welfare cess, from 19.25 per cent.
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