The Narendra Modi-led government has slashed base custom duties on palm oil, soyabeanoil and sunflower oil to ease elevated level of edible oil prices, Finance Ministry said.
The base import tax on crude palm oil has been reduced to 2.5 per cent from 10 per cent, while the tax on crude soyoil and crude sunflower oil has been reduced to 2.5 per cent from 7.5 per cent, the Finance Ministry informed.
The notification came into effect from Saturday.
With the reduction, the effective duty on crude palm oil, crude soyoil and crude sunflower oil will come down to 24.75 per cent whereas effective duty on refined palm oil, soyoil and sunflower oil will be 35.75 per cent, Solvent Extractors’ Association of India (SEA) executive director B V Mehta told PTI.
The fresh round of cut could bring down the retail prices by Rs 4-5 per litre, he said, adding, it is also generally seen that prices harden in international market after India reduces its import duty so the real impact could be Rs 2-3 per litre only.