The federal government has approved a tax relief of 10 percent on import of edible oil for the months of April and May to ensure smooth supply to consumers during the holy month of Ramazan.
Federal Minister for Finance and Revenue Shaukat Tarin gave this approval while presiding over a meeting on edible oil on Friday, said a press statement issued by the Ministry of Finance.
The tax relief measure on import of edible oil is being undertaken for a short term to deal with the expected shortfall of the commodity during the month of Ramazan due to hike in prices, as 90 percent of nation’s annual demand for ghee/cooking oil is dependent on imported inputs.
The meeting was apprised that monthly average retail prices of RBD palm oil are highly volatile and have increased almost twice compared to last year. Currently, in the month of January, there has been significant increase in its prices, approximating Rs1351 per tonne.
Among others, the meeting was attended by Federal Minister for Industries & Production Makhdoom Khusro Bakhtiar, secretary industries & production, chairman Federal Board of Revenue, and other senior officials.
It is pertinent to note that Malaysian palm oil futures prices rose 1.56 percent to $1,431.35 per tonne on Friday. The prices surged 7 percent this week.
Soyoil prices on the Chicago Board of Trade BOc2 were up 0.37 percent. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Top palm oil producers Indonesia and Malaysia remain committed to their mandatory biodiesel programmes despite higher prices of the feedstock to reach green energy goals.