Customs duty on edible oils
New Delhi, May 12 (UNI) Minister of State for Finance S S Palanimanickam today informed the Rajya Sabha that main raw material for manufactur of vanaspati is Crude Palm Oil, which attracts basic customs duty of 80 per cent, education cess at the rate of 2 per cent of the aggregate of customs duty and 4 per cent additional duty of customs.
However, as per commitments under Indo-Nepal Treaty and Indo-Sri Lanka Free Trade Agreement, vanaspati imported from Nepal (upto one lakh metric tonne a year) and Sri Lanka attracts nil customs duty and 4 per cent additional duty of customs.
He also said that total import of vanaspati during past three years was to the tune of 55,537 mt in 2003-04, 62,926 mt in 2004-05 and 1,27,322 mt in 2005-06 from April to September.
The Minister further said that in this year's budget, taking into account the problems of vanaspati industry, basic customs duty on vanaspati was raised from 30 per cent to 80 per cent.
UNI BBS VD HS1543