New Delhi, With a view to curbing the inflation of edible oil in the country, the government on Thursday reduced the duty on import of crude palm oil from 37.50 per cent to 27.50 per cent. The new rate of import duty will be applicable from Friday.
According to a notification issued by the Central Board of Indirect Taxes and Customs on Thursday, the basic customs duty on crude palm oil, ie, the basic customs duty has been increased to 27.5 per cent, which will be applicable from 27 November.
Currently, the import duty on crude palm oil is 37.50 per cent, which is in force from January 2020. On this, social welfare cess i.e. Social Welfare Cess is 10%. Thus, currently the effective tax on crude palm oil is 41.25 per cent, but from November 27, after adding 27.50 per cent import tax and 10 per cent social welfare cess, 30.25 tax will have to be paid.
Oil oilseeds market experts say that the import duty on crude palm oil will reduce the import of palm oil in the country, which will also affect the prices of other edible oils, as India imports the highest palm oil among edible oils. .
India imports palm oil from Malaysia and Indonesia.
Its impact on crude palm oil futures was seen on Thursday itself and the CPO’s most active futures contract fell by more than three per cent.
The country’s largest futures market Multi Commodity Exchange, MCX, was trading at 8.42 pm on Thursday at 8.42 pm, crude palm oil, or CPO, was down by Rs 33.20, or 3.69 per cent, from the previous session at Rs 866 per 10 kg.