Concerned over high prices of cooking oils, the government has reduced the basic customs duty on refined palm oil to 12.5% from 17.5% till March next year to boost domestic supplies and bring down rates in the domestic retail markets.
With reduction in the basic custom duty (BCD), the effective levy (including social welfare cess) on both refined palm oil and refined palmolein will come down to 13.75%, from 19.25%, the Solvent Extractors’ Association of India (SEA) said.
Late on Monday, the Central Board of Indirect Taxes and Customs (CBIC) issued a notification which “seeks to reduce BCD on refined palm oil and its fractions from 17.5% to 12.5% till March 31, 2022”. The new rate is effective from Tuesday.
The average retail prices (per kg) of groundnut oil on Monday stood at ₹181.48, mustard oil ₹187.43, vanaspati ₹138.5, soyabean oil ₹150.78, sunflower oil ₹163.18 and palm oil ₹129.94, data with the consumer affairs ministry showed.
