The Hindu Business Line : Plea to reimpose 4 pc SAD on refined oils

THE New Delhi-based Central Organisation for Oil Industry and Trade (COOIT) has urged the Government to reimpose four per cent special additional duty (SAD) on imported refined edible oils.

SAD was removed as part of several concessions announced last week.

Stating that removal of SAD has rendered import of crude soyabean oil (45 per cent Customs duty) unviable, Mr D.P. Khandelia, President of COOIT, has expressed apprehension that refined soyabean oil imports would increase, denying the domestic refining industry value addition.

Because of high sales tax and other levies on indigenous oils, imposition of SAD on refined oils was justified, he said, adding that such a step would have minimal impact on Customs duty - duty on refined soyabean oil will go up from 45 per cent to 50.8 per cent and that on palm oil/palmolein from 70 per cent to 76.8 per cent.

On import of refined oils, apart from basic Customs duty, a countervailing duty equivalent to excise duty (Rs 1,000 a tonne) is levied.

COOIT has also requested that while imposing SAD the Government may consider exempting refined edible oils from excise duty which has given rise to malpractices, distortions and price rise.

More Stories on : Oilseeds & Edible Oil | Excise and Customs

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