Government Planning To Cut Tax On Edible Oil To Control Rising Prices

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Government Planning To Cut Tax On Edible Oil To Control Rising Prices

Edible Oil Prices: In order to control the rise in the prices of edible oil due to the ongoing war between Ukraine and Russia and Indonesia’s decision to ban the export of palm oil, the Indian government may reduce the tax on some edible oil. The government can take a decision to cut the cess on imported edible oil. In fact, the prices of edible oil are already on fire and it is being feared that in the coming days it may rise further. This is the reason why the government can reduce the tax on edible oil.

Agriculture Cess may be reduced on edible oil
It is believed that 5 percent agricultural cess on crude palm oil can be reduced to zero to give relief to the common people from expensive oil. The oil industry of expensive edible oil is also troubled. This is the reason why the industry has demanded the government to reduce the import duty on canola oil from 38.5 per cent to 5.5 per cent. So that the import of canola oil can be started.

India has the highest consumption of edible oil
India imports half of its edible oil consumption from Indonesia. However, the Ministry of Consumer Affairs has said that despite the ban imposed by Indonesia, there is sufficient quantity of edible oil in India. The ministry said that the government is monitoring the prices of edible oil and all necessary steps will be taken to keep the prices under control.

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Indonesia increased trouble
After Indonesia’s decision to ban the export of palm oil, 2,90,000 tonnes of edible oil coming to India is stuck in Indonesia’s port and oil mill. Indonesia has banned crude palm oil and refined palm oil, due to which there is a possibility of shortage of vegetable oil in India. In fact, Indonesia has banned the export of palm oil from 28 April 2022. Indonesia is one of the largest producers of palm oil, while India is one of the largest importers of the world’s largest edible oil – especially palm oil and soya oil.

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