Tuesday , November 29 2016
Home / Business / Govt hikes import duty on edible oil by 5%

Govt hikes import duty on edible oil by 5%

edible-oil_6

New Delhi :Government today hiked import duty on edible oil by 5 per cent in a bid to safeguard the domestic industry.

Customs or import duty on edible oil in all categories has been increased by 5 per cent, Central Board of Excise and Customs said in a notification.

Duty on crude edible oil has been increased from 7.5 per cent to 12.5 per cent and on refined edible oil from 15 per cent to 20 per cent.

The revision in duty follows review of the situation by Revenue Secretary Hasmukh Adhia on Wednesday.

According to industry estimates, edible oil imports are likely to increase to 14 million tonnes in the 2014-15 oil year (November to October) from 11.6 million tonnes in the previous year.

Imports of vegetable oils, which includes both edible and non-edible oils, rose by 23 per cent to 11.72 million tonnes during November-August period as against 9.52 million tonnes in the same period last year.

Solvent Extractors’ Association Executive Director B V Mehta said earlier this week that looking at the current conditions, the industry had demanded to raise the import duty on crude edible oil from 7.5 per cent to 25 per cent and refined edible oil from 15 per cent to 45 per cent, thus maintaining the duty difference of 20 per cent.

PTI