Concessional import duty on edible oils to be applicable till March 2023 – concessional import duty on edible oils to be applicable till march 2023
The Central Board of Indirect Taxes and Customs (CBIC) took this decision on August 31, 2022 to boost domestic supply of edible oils and keep retail prices under check.
The Food Ministry said in a statement that the decision of the CBIC on the existing concessional import duty on specified edible oils will be applicable till March 2023. According to the statement, “The concessional customs duty on edible oil imports has been extended for a period of six months. This means that the new deadline will now be March 2023.”
The ministry also said that there has been a softening trend in domestic edible oil prices due to fall in global prices. Retail prices of edible oils in India have come down significantly, coupled with falling global rates and lower import duties.
According to the statement, the existing duty structure on Crude Palm Oil, RBD Palmolein, RBD Palm Oil, Crude Soyabean Oil, Refined Soybean Oil, Crude Sunflower Oil and Refined Sunflower Oil will remain unchanged till March 31, 2023.
Currently, import duty on crude varieties of palm oil, soybean oil and sunflower oil is zero. However, taking into account the five per cent agriculture cess and 10 per cent social welfare cess, the effective duty on crude varieties of these three edible oils is 5.5 per cent.
Besides, the basic customs duty on different varieties of palmolein and refined palm oil is 12.5 per cent, while the social welfare cess is 10 per cent. Thus the effective duty is 13.75 per cent.
The government had cut import duty on palm oil on several occasions to increase domestic availability with edible oil prices remaining high throughout the last year.