Govt reduces tax on crude palm oil to 5%, to curtail edible oil price rise
Premium- Centre also stated that this move increases the import tax gap between CPO and Refined Palm Oil to 8.25%.
In order to stop any further rise in prices of domestic edible oils, due to rise in price of edible oil globally, the Indian government declared a reduction in agri-cess for Crude Palm Oil (CPO).
The Indian government on Monday, 14 February announced that the agri-cess on Crude Palm Oil (CPO) has been reduced to 5% from 7.5% earlier. The decision came into effect from 12 February.
The press release also stated that this move increases the import tax gap between CPO and Refined Palm Oil to 8.25%.
The move to increase the gap between the CPO and Refined Palm Oil intends to benefit the domestic refining industry to import Crude Oil for refining, the press release mentioned.
The Indian government also extended the current basic rate of import duty of zero percent on Crude Palm Oil, Crude Soyabean oil and Crude Sunflower Oil upto 30 September, 2022.
The official statement also mentioned that this move intends to to check the prices of edible oils in the country.
“The rate of import duty on Refined Palm Oils at 12.5%, Refined Soyabean oil and Refined Sunflower Oil at 17.5% will remain in force up to 30th September, 2022. This measure will help in cooling down the prices of edible oils which are witnessing an upward trend in the international market due to lower availability and other international factors," the statement read.
These steps will augment the earlier measure taken by the Government viz. the stock limit order dated 3 February, 2022 vide which the Government had specified the stock limit quantities on edible oils and oilseeds for a period upto 30 June, 2022 under the Essential Commodities Act, 1955.
“This measure is expected to curtail any unfair practices like hoarding, black marketing etc. of edible oils and oilseeds in the market which may lead to any increase in the prices of edible oils," the Centre's statement clarified.
Oil industry has been called for a meeting tomorrow 15 February, to do their best in passing on the benefit to consumers and State Governments have been directed to enforce stock limit order strictly.
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