Business News Desk – In the next few days, in the festive season that is gaining momentum, common people may have to face increased prices of edible oils. Actually, the government has decided to increase the custom duty on various edible oils. Its effect can be seen on the prices.
Custom duty has been increased on these oils
According to a report by news agency PTI, the government has decided to increase custom duty on crude and refined sunflower oil and some other edible oils. The report quoted a notification from the Finance Ministry saying – Basic Custom Duty (BCD) has been increased on crude and refined palm oil, soybean oil and sunflower seed oil.
Now the basic custom duty has become this much
The rate of basic custom duty on crude palm oil, crude soybean oil and crude sunflower seed oil was zero till now. That is, there was no import duty on the import of these oils. Now it has been increased to 20 percent. At the same time, the rate of basic custom duty on refined sunflower seed oil, refined palm oil and refined soybean oil has now been increased to 32.5 percent. Earlier this rate was 12.5 percent. These changes have come into effect from today, Saturday (14 September).
This will be the effective duty rate
According to the report, due to the increase in custom duty, the total rate of effective duty on all related edible oils has increased to 35.75 percent. The effective rate of duty on crude palm oil, crude soybean oil and crude sunflower seed oil has now increased from 5.5 percent to 27.5 percent. At the same time, the effective rate of duty on refined sunflower seed oil, refined palm oil and refined soybean oil has now increased from 13.75 percent to 35.75 percent.
Oil consumption increases during festivals
Custom duty on various edible oils has been increased at a time when the series of festivals is going to intensify in the country in the next few days. Half of the month of September has passed. Festivals like Navratri and Dussehra are coming in the next month i.e. in the beginning of October. After that there is the festival of Diwali at the end of October. Consumption of edible oils increases during festivals.