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The government will reduce tariffs on cooking oil imports, which could lead to lower domestic prices

New Delhi: The government has reduced import tariffs on cooking oil, including palm oil, by up to $ 112 per ton. Experts say this can lead to lower domestic prices.
Through notice, the Central Board of Indirect Taxation and Customs (CBIC) has reduced tariff imports of crude palm oil by US $ 86 per ton and tariff imports of RBD and crude palmolein by US $ 112 per ton.
We also reduced the basic import price of soybean crude oil by $ 37 per ton.
Changes to tariffs on cooking oil will take effect on Thursday (June 17th).
Tax experts said lowering tariffs could soften cooking oil prices in the domestic market as they lower tariffs paid on basic import prices.
Rajat Mohan, senior partner at AMRG & Associates, said there was a big gap between domestic production and consumption of cooking oil in India, which led to large imports and retail prices have risen in recent months. I did.
“The ripple effect of this reduction in basic import prices could be seen in retail prices if the entire supply chain, including manufacturers, distributors and retailers, is ready to pass on this profit to end consumers. There is, “Mohan added.
Domestic cooking oil prices have more than doubled in the past year.
India meets about two-thirds of its cooking oil demand through imports.
EY’s tax partner, Abhishek Jain, said the tariff amount is a deemed amount set by the government for the purpose of paying the tariff. That is, you have to pay customs duty on a fixed tariff amount, regardless of the transaction amount.
“This reduction in tariffs on cooking oil by the government means a reduction in tariff payments, which in turn reduces costs for importers and end users / consumers,” Jane added.
The government said Wednesday that cooking oil prices have begun to fall in the past month and are working on a series of medium- to long-term steps to make the country self-sufficient in this segment.
According to data compiled by the Indian Solvent Extraction Association, total imports of vegetable oils (edible and non-edible oils) from November 2020 to May 2021 increased by 9% to 76,77,998 tons, compared to the previous year. Corresponding period of.
The year of cooking oil is from November to October.



The government will reduce tariffs on cooking oil imports, which could lead to lower domestic prices

Source link The government will reduce tariffs on cooking oil imports, which could lead to lower domestic prices

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