New Delhi. In order to give relief from the expensive prices of edible oil, the central government has cut the tax on crude palm oil. Now it will be taxed at 5 per cent, whereas till now it was taxed at 7.5 per cent. Due to the 2.5% reduction in tax, the prices of edible oil are likely to come down.
In order to prevent further increase in the prices of edible oils, the Government of India has announced reduction in agricultural cess for crude palm oil. The Government of India said on Monday, 14 February that the agricultural cess on crude palm oil (CPO) has been reduced to 5% earlier. This decision has come into effect from February 12. The press release also said that with this move the import tax gap between CPO and refined palm oil has increased to 8.25%.
Also read – Inflation: Retail inflation has been increasing continuously for 7 months, 6.01 percent in January
profit in imports
The press release mentioned that the move to widen the gap between CPO and refined palm oil would benefit the domestic refining industry in importing crude oil for refining. The Government of India has increased the current basic rate of import duty on crude palm oil, crude soybean 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.
Hoarding and black marketing will be curbed
The Centre’s statement clarified that 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 Oil Industry has been called for a meeting tomorrow, 15th February, to do its best to benefit the consumers and the State Governments have been directed to strictly implement the Stock Limit Order.
Also Read – Vedant Fashions shares to be listed on February 16, know whether it will open up or down?
Earlier, the government had reduced the duty applicable on import of crude palm oil from 8.25 per cent to 5.5 per cent. Amid a rise in the Malaysian market, prices of crude palm oil fell on Monday in the Delhi oilseeds market due to reduction in customs duty. On the other hand, soybean, mustard and groundnut oil prices remained firm due to increased demand for light oils.
Tags: edible oil, inflation, Palm oil
Read Article in हिन्दी