Monday, 18 October 2021

Govt removes Agri cess and cut import duty on edible oils till March 2022

Govt removes Agri cess and cut import duty on edible oils till March 2022

All import duty on crude varieties of palm oil, soyabean oil, and sunflower oil have been scrapping till March 31, 2022, the Central Bureau of Indirect Taxes and Customs has said.

The latest move will slash the effective import duty on crude palm oil, crude soya oil, and crude sunflower oil from 24.75 percent to nil. However, responsibilities on refined soya oil and refined sunflower oil remain in place.

Edible oil duties had been first cutting in June. Subsequently, essential customs duties were cut in August and September over less than a month. However, retail prices have continued to remain high. As a result, the cut-off date for ending duty cuts, September 30, may have to be extended, officials had said last month.

Sources had said that two more duty cuts would be announced before the new crop arrives in November. They had added that the government had kept enough policy room for two more cuts, based on current price and supply trends.

Govt removes Agri cess and cut import duty on edible oils till March 2022 1pixabay image

Read More : Government imposed a stock limit on oil seeds edible oil to reduce the price

Agri cess lifted

The latest push to reduce prices also saw the lifting of an additional agri cess placed on these items earlier this year.

‘Agriculture Infrastructure and Development Cess’ (AIDC), introduced in the latest budget and effect from February 2021, has been levied, which would be collecting on specific imported and excisable goods.

The primary purpose of levying AIDC is to finance agriculture infrastructure and other development expenditures while conserving and efficiently processing agricultural output. AIDC shall be imposing on the import of goods detail in the first schedule of the Customs Tariff Act (CTA) at a rate not exceeding the customs

This includes importing goods like fruits, pulses, certain alcoholic beverages, coal, cotton, fertilizers, gold, silver, etc. The said cess is also leveeing as an additional duty of excise on manufacturing petrol and high-speed diesel.

The cess will now not be charging on the import of these products till March 31, 2022.

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