Govt reduces import duty on several essential commodities

The Dollar Business Bureau

In line with this year’s annual budget, the Government had cut down the import duty on several essential commodities with an aim to stabilise the prices of these commodities in the country.

Reduction in import duty on wheat from 25% to 10% with effect from September 23 for a period of up to February 28, 2017 [notification No.51/2016-Customs, dated September 23] which was subsequently further reduced to Nil with effect from December 8 without any end date [notification No.60/2016-Customs, dated December 8, 2016].

According to Finance Minister’s latest notification, reduction in import duty on potatoes from 30% to 10% will be imposed with effect from September 23 for a period up to October 31 [notification No.51/2016-Customs, dated September 23, 2016].

Santosh Kumar Gangwar, MoS in the Ministry of Finance, said in a written reply to the Lok Sabha that the import duty on crude palm oil of edible grade will be reduced from 12.5% to 7.5%, while the import duty on refined palm oil of edible grade will be reduced from 20% to 15% [notification No.51/2016-Customs, dated September 23, 2016].

Last week, the government had announced it would slash the import duty on wheat to 0% from the former 10% and earlier reduction of 25%. The decision was taken to ensure the domestic availability of wheat in the backdrop of rising commodity prices and IMD’s forecast of warmer winter which could hamper the production of wheat in the country.