Duty on edible oil reduced

The government has accepted the long-awaited demand of vegetable ghee makers to reduce the duty on edible oil imports from 20 percent to 15 percent.
According to industry sources, this step would discourage the flying invoices system. Total oil imports every year amount to about 1.2 million tons. This step will also save the government from refund process which was very time consuming.
The relief provided to the industry will create conditions by which the prices of cooking oil and vegetable ghee may be brought down.
It is yet to be seen when this benefit is passed on to the consumer by the ghee industry.
The budget speech of Finance Minister indicated that now the purchaser of cottonseed and cottonseed oil will have to pay 15 percent sales tax. This will improve the documentation of the economy and it will increase income of the government.
Every year, 0.4 million tons cottonseed oil is purchased by industrial consumers. Now the oil expellers, as well as the ghee units, will pay this sales tax.