Edible oil: Nil customs duty on Soya crude, 5-yr tax holiday

The Soybean Processors Association of India, popularly known as SOPA, is the only national level body representing the soybean processors, farmers, exporters and brokers in India working towards the aim to strengthen soybeans as a viable crop. The main objective of SOPA is to encourage the development and promotion of soy-based products in the interest of the farmeras well as the processors.

In its pre budget 2012-13 memorandum SOPA has proposed to bring the Custom Duty on crude Soya Oil to be brought NIL from 15% at present. Meanwhile, the association has requested to increase the Custom Duty of Refined Soya Oil to 22.5% against 7.5% at present or at-least raise each by 10% to offset local taxes paid by domestic producers vis-a-vis importers to have a level playing field. The association feels that this will increase better capacity utilization by solvent extraction units & refineries in the county.

Further, SOPA has proposed to levy 15% customs duty on import of Crude Soya Oil, 22.5% on import of Refined Soya Oil or at-least raise each by 10% to offset local taxes paid by domestic producers vis-a-vis Importers to have a level playing field. This move will Reduce import of Soya Oil (current import is 7 Lac ton per annum).

Excise Duty levied on Soya processed food products varies between 4.12% to 12.3% which the association has proposed to put to NIL, while the excise duty on Soya products to be reduced from present 12.3% to NIL as according to SOPA this would accelerate sales of Value Added Soya Products in the country by 15 to 20% p.a.

SOPA has requested a Tax Holiday for 5 years to the Soya processing industries operating in rural areas as this will encourage entrepreneurs to start new Soya Processing Units which will results in higher employment in rural areas. Also, the association has also requested Exemption of Soya Seed, Oil, Meal and Processed Food products from the proposed GST which ranges between 4 to 12.5%. Further, SOPA has requested Input Tax Rebate on consumables as this will help in cost saving and correspondence increase in productivity

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