Govt scraps basic customs duty, cuts agri cess on vegetable oils

The duty cuts will be effective from October 14 and will remain in force till March 31, 2022, the Central Board of Indirect Taxes and Customs (CBIC) said in a notification. Crude palm oil will now attract Agri infrastructure development cess (AIDC) of 7.5 percent, while the rate will be 5 percent for crude soyabean oil and crude sunflower oil.

Post reduction, the effective customs duty on crude varieties of palm, soya bean, and sunflower oil will be 8.25 percent, 5.5 percent, and 5.5 percent respectively. Besides, the basic customs duty on refined varieties of sunflower, soybean, palm olein, and palm oil has been slashed to 17.5 percent each from 32.5 percent at present.

“The government has slashed import duties on edible oils because of high retail prices in the domestic market and the festive season,” Solvent Extractors’ Association of India Executive Director BV Mehta said.