NEW DELHI, Aug 13 Asia Pulse - Government is considering a cut in theprices on which import duties are levied on vegetable oils as part of themeasures to check inflation.
The proposed move comes at a time when the rates at which duty is leviedon palm and soyabean oils is around US$100 a tonne more than the prices atwhich these commodities are imported, leading to a higher retail price byabout Rs 3,200 per tonne.
"That the tariff value on vegetable oils needs to be cut is correct. Weare aware of the anomaly and it is a matter of concern", a top official ofthe Central Board of Excise and Customs told PTI here.
The duty on refined palm oils was enhanced in the Union Budget by 5 percent while the base price at which duty is levied (Tariff Value) was leftuntouched at the time in the context of the then fiscal scenario, theofficial said but did not specify the time when the actual cut will takeplace.
Despite the global fall in edible oil prices due to bumper crops, theworld over, the Tariff Value at which the duty is levied on soya and palmoils has not be cut for nearly last six months.
To prevent underinvoicing, government levies import duty on edible oils ata fixed price, irrespective of the rate at which the import contract hastaken place.