PremiumThe government had in October 2021 announced concessional import duty on crude soybean oil, crude palm oil and crude sunflower oil till March 2022, which was once extended till end of September. This has now again been extended till next March, as per the order.
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NEW DELHI: The finance ministry has extended concessional basic customs duty and agriculture and infrastructure development cess applicable on edible oils by six months till end of March 2023, showed an official order.
The government had in October 2021 announced concessional import duty on crude soybean oil, crude palm oil and crude sunflower oil till March 2022, which was once extended till end of September. This has now again been extended till next March, as per the order.
The government had in February also allowed exemption from the agriculture and infrastructure development cess on imported lentils till September, which was later in July extended till March 2023.
The reduction on basic customs duty and the cess were offered to give relief to consumers as edible oil prices had shot up in world markets.
Accordingly, in addition to the concessional basic customs duty for soybean oil, sunflower oil and palm oil that was announced in October 2021, the 5% concessional cess on crude palm oil and exemption from cess to lentils will continue till March. There is total exemption from customs duty on edible oils in the category ‘crude’ while refined category attracts 17.5% customs duty.
Consumer price index based inflation data for July showed that oils and fats category saw 7.5% inflation in July. Food inflation stood at 6.75% in July compared with 3.96% in the same month a year ago, official data showed.
“The Central Board of Indirect Taxes and Customs had reduced basic customs duty and the agriculture and infrastructure development cess on palm oil and soyabean oil in October 2021 to tackle inflation. This concession was initially valid till 31 March 2022 and was extended till 30 September 2022. The government has further extended this concession till 31 March 2023 which would help in softening the prices of edible oils," explained Saurabh Agarwal, Tax Partner, EY.