Government cuts tax on crude palm oil to 5% to offset the rise in edible oil prices

The Government of India on Monday, 14 February announced that the Agriculture Cess on Crude Palm Oil (CPO) has been reduced to 5% from the earlier 7.5%. This decision has come into effect from February 12.

The press release also said that the move has widened the import tax gap between CPO and refined palm oil to 8.25%.

Steps to widen the gap between CPOs And Refined Palm Oil intends to benefit the domestic refining industry by importing crude oil for refining, the press release noted.

The Government of India has extended the current basic rate of import duty on Crude Palm Oil, Crude Soyabean Oil and Crude Sunflower Oil till September 30, 2022.

The official statement also mentioned that the move is aimed at checking the prices of edible oils in the country.

“The rate of import duty on refined palm oil at 12.5 per cent, refined soybean oil and 17.5 per cent on refined sunflower oil will remain in force till September 30, 2022. This measure will help in bringing down the prices of edible oils. upward trend internationally Market Due to low availability and other international factors,” the statement read.

These steps will augment the earlier measures taken by the government. Stock Limit Order dated 3rd February, 2022 by which the Government had specified the stock limit quantity on edible oils and oilseeds for the period up to 30th June, 2022 under the Essential Commodities Act, 1955.

“The move is expected to curb unfair practices like hoarding, black marketing etc. of edible oils and oilseeds in the market, which may lead to any increase in the prices of edible oils,” the Centre’s statement clarified.

The oil industry has been called for a meeting tomorrow, February 15, to do its best in benefiting the consumers and the State Governments have been directed to strictly implement the stock limit order.