CURRENT AFFAIRS

Detailed explanation-1: -In December 2021, India cut basic import tax on refined palm oil and brought down the total taxes on their imports to 13.75% from 19.25% earlier. The duty cut made refined palm oil imports lucrative for Indian refiners, which traditionally prefer to import crude palm oil.

Detailed explanation-2: -UPSC Mains. Q. Which tax on crude Palm oil was recently reduced to 10 per cent? Notes: As per a recent notification by the Central Board of Indirect Taxes and Customs (CBIC), the basic customs duty on crude palm oil has been cut to 10 per cent and refined palm oil to 37.5 per cent.

Detailed explanation-3: -Stating that the rise in refined palm oils import is affecting the domestic refining industry, the SEA President said the duty difference can be widened “by increasing the import duty on RBD palmolein from current 12.5 per cent to 20 per cent, without any change in crude palm oil duty".

Detailed explanation-4: -The basic customs duty on refined varieties of palmolein and refined palm oil is 12.5 per cent, while social welfare cess is 10 per cent. So, the effective duty is 13.75 per cent.