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India’s Tax Cut Decision On Palm Oil Imports – Which Country Will Gain Most?

The tax on crude palm oil imports was reduced to 40% from 44% while tax on refined Palm Oil was lowered to 50% from 54%.

India’s Tax Cut Decision On Palm Oil Imports – Which Country Will Gain Most?
India’s Tax Cut Decision On Palm Oil Imports – Which Country Will Gain Most?

India has recently taken a decision to cut the import taxes on crude as well as refined palm oil from Southeast Asian (ASEAN) economies.

The tax on crude palm oil was reduced to 40% from 44% while tax on refined palm oil was lowered to 50% from 54%.

Key motive behind the move.

The tax cut decision on crude and refined palm oil imports was reportedly taken following a request from oil suppliers.

Malaysia to go gain most.

This particular tax cut decision would majorly benefit Malaysia as Malaysian shipments of refined palm oil will be taxed at 45% compared with 54% earlier.

However, this move would give tough time to domestic refining Industry and would break growth of palm farms in the country, analysts say.