Major Tax Relief: Centre Reduces Basic Customs Duty on Crude Palm, Soybean, and Sunflower Oils
Centre cuts import duty on crude edible oils from 20% to 10% to reduce retail prices and ease food inflation.
The Central Government has reduced the import tax (Basic Customs Duty) on three major crude edible oils, such as sunflower oil, soybean oil, and palm oil, from 20% to 10%. This move aims to reduce the price of cooking oils in the market and provide some relief to consumers. This decision was taken after edible oil prices started rising sharply due to a tax increase in September 2024...
The Central Government has reduced the import tax (Basic Customs Duty) on three major crude edible oils, such as sunflower oil, soybean oil, and palm oil, from 20% to 10%. This move aims to reduce the price of cooking oils in the market and provide some relief to consumers.
This decision was taken after edible oil prices started rising sharply due to a tax increase in September 2024 and rising global prices. The new tax cut will reduce the overall cost of importing crude oil, which should lead to lower prices in shops.
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At the same time, the difference in tax between crude and refined edible oils has increased from 8.75% to 19.25%. This is done to encourage local oil refining companies to process crude oil in India instead of importing already refined oil. This helps local businesses and reduces India’s dependence on imported refined oils.
The government has told all edible oil companies and associations to pass on the benefits of this tax cut to customers. They have been asked to:
- Lower their distributor and retail prices immediately,
- Send weekly updates on the new Maximum Retail Price (MRP) for each brand to the Department of Food and Public Distribution (DFPD),
- Make sure that consumers actually see the price drop at the store level.
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A meeting was held with industry leaders, and the government clearly said that the price cuts should happen quickly. The DFPD has even shared a format to help companies report the new, reduced prices.
This change comes after the government reviewed how last year’s tax hike had caused a big increase in edible oil prices, making it harder for families to afford basic cooking oils and pushing up food inflation. With this new policy, the government hopes to lower cooking oil prices, support Indian refining companies, and control inflation, bringing some much-needed relief to everyday consumers.
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