The Cabinet Committee of Economic Affairs on 17 January 2013 approved the de-freezing of the tariff values of the all types of edible oils and notified that the tariffs of these oils would be decided on the basis of the existing international prices in the market.
Oils that would suffer the effect of this decision are Soyabean Oil – Crude Palm Oil - RBD (Refined Bleached Deoderized), Palm Oil – Crude, Palmolein – Crude, Palm Oil – others and Palmolein – others.
The decision would bring an advantage to the domestic refining industry because of the impact that the imports of the edible oils will do on the collected duty.
Under Section 14 (2) of the Customs Act – 1962 – the tariff value is fixed on the edible oils mentioned would be notified fortnightly. The tariff value of the edible oils remained unchanged since 31 July 2006 as a result of fiscal measures to control inflation. This halt in increase in the tariff value have created a great difference between the notified tariff and the computed landed prices following the price of edible oils in the international market. This halt had an adverse impact on the domestic refining industry as well as the revenue collection.