Mumbai, Nov. 18
No reduction in customs duty on imported vegetable oils, a hike in customs duty on imported vanaspati and a friendly VAT regime are some of the suggestions made by the New Delhi-based Central Organisation for Oil Industry and Trade in its pre-budget memorandum to the government.
The quantity of vanaspati imported from Sri Lanka under the bilateral trade agreement may be capped at 50,000 tonnes and the same may be canalised through government parastatals such as STC or NAFED, the apex body has suggested.
It has also strongly argued against any reduction of customs duty on crude palm oil as it would result in misuse, misbranding and similar malpractices, in addition to demanding that oilseeds and its derivatives should be placed in the one per cent sales-tax category in the VAT regime instead of the present 4 per cent.
The Central Organisation has asked the government to notify tariff value changes on imported vegetable oils on a fixed day every month and make the basis of fixing the tariff values transparent.