Custom duty and cess will not be imposed on edible oils for 6 more months, know what will be the effect on prices

Custom duty and cess will not be imposed on edible oils for 6 more months, know what will be the effect on prices
Custom duty and cess will not be imposed on edible oils for 6 more months, know what will be the effect on prices

Highlights

This decision of the government will help in controlling the prices of oils in the domestic market.
Now custom duty on edible oils falling in the category of crude is nil.
Inflation in the oil and fat category stood at 7.5% in July.

New Delhi. The exemption given to imported edible oils from basic custom duty and agriculture infra and development cess has been extended for another 6 months. Now this exemption will be applicable on the import of these edible oils till March 2023. The government on October 2021 for the first time announced exemption of custom duty and agricultural infra and development cess on imported crude soybean oil, crude palm oil and crude sunflower oil till March 2022. In March, this exemption was extended till September 2022.

Significantly, in February, the government had extended the exemption in agriculture and infrastructure development cess on imported lentils till September 2022 and then in July decided to extend it till March 2023. The government’s decision not to impose custom duty and cess on the import of edible oils for the next 6 months will help in controlling the prices of oils in the domestic market.

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They will also continue to get discount
According to a report by Live Mint, not only this, the exemption applicable on custom duty on soybean oil, sunflower oil and palm oil from October 2021 has also been extended till March 2023. Similarly, 5% customs duty exemption on import of crude palm oil and lentils will continue till March 2023. Now custom duty is nil on edible oils falling in the category of crude, then 17.5% custom duty is applicable on edible oils falling in the refined category.

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Prices will remain under control
EY’s tax partner Saurabh Agarwal says that the government had cut customs duty on palm oil and soybean oil and agriculture infra and development cess to control inflation. After this, the government has been continuously advancing this exemption. Now the government has announced to give exemption in custom duty and cess till March 31, 2023. This is likely to bring down the prices of edible oils. The inflation data based on the Consumer Price Index for July showed that the inflation rate in the oil and fat category was 7.5% in July. Official data shows that food inflation stood at 6.75% in July, compared to 3.96% in the same month a year ago.

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Tags: custom duty, edible oil, edible oil price

FIRST PUBLISHED : September 01, 2022, 20:04 IST

The article is in Hindi

Tags: Custom duty cess imposed edible oils months effect prices

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