After cooking oil prices have remained high for quite a while, the centre has decided to take them lower and reduced the duty levied on crude palm oil by 5 percent. The ministry of consumer affairs, food and distribution said, "The international prices of crude edible oil and refined palm oil were showing declining trend in prices over the past one month. Still, the prices of domestic refined palm oil and crude edible oil remained high. The Government, keeping in view the consumer interest due to rising prices of edible oil, has reduced the duty on CPO duty".
"Ministry of Finance vide Notification No. 34/2021-Customs dated 29th June, 2021 has cut duty on CPO to 10% from 15% w.e.f. 30th June, 2021 and this will remain in force up to and inclusive of the 30th September, 2021," the statement added.
Post the rate cut, the tax rate on crude palm oil shall be 30.25 percent including agri-cess of 17.5 percent and social welfare cess of 10 percent The reduction in such levies will come into effect from September 20 and will pullback the price of edible oil lower.
Also, the department has made a recommendation that the restriction on import of RD Palmolein. Moreover, the refined palm oil has been placed under the general category of imports supporting its availability at lower prices for the domestic consumer, Department of Commerce vide Notification No. 10/2015-2020 dated 30th June, 2021 has issued revised import policy for Refined Bleached Deodorized (RBD) Palm Oil and RBD Palmolein by removing both from restricted to free category. This would be effective with immediate effect and for a period upto 31.12.2021," the Centre added.