Oleochem Analytics – India, the world’s biggest vegetable oil buyer, has cut base import taxes on crude palm oil (CPO), soybean oil (SBO) and sunflower oil to reduce edible oils prices, according to government Notification No. 42/2021 released September 10.
The base import tax on CPO has been slashed to 2.5% from 10%, while the tax on crude SBO and crude sunflower oil has been reduced to 2.5% from 7.5%. The base import tax on refined grades of palm oil, SBO and sunflower oil were cut to 32.5% from 37.5%, the government said.
After the cuts, CPO, SBO and sunflower oil imports will be subject to a 24.75% tax in total, including a 2.5% base import duty and other taxes, while refined grades of palm oil, SBO and sunflower oil would carry a 35.75% tax in total, according to the notification.
Notification No. 42/2021 has been put in effect since September 11.
India fulfils more than two-thirds of its edible oil demand through imports, mainly palm oil from top producers Indonesia and Malaysia, while other oils, such as SBO and sunflower, come from Argentina, Brazil, Ukraine and Russia, according to India’s Ministry of Commerce and Industry.