New Delhi: India's Election Commission has approved a proposal by the Government to allow tax-free imports of refined sugar, the trade secretary said today. India's cabinet had last week decided to remove a 60 per cent import tax on up to 1 million tonnes to refined sugar for the next four months and also waived a condition to export whites in lieu of duty-free purchases of raws.
"A decision has been taken on the abolition of import tax on raw and white sugar. EC approval has been obtained, "G K Pillai told reporters on Monday.
He said a formal order to allow imports of 1 million tonnes of whites at zero duty would be issued soon.
The government has also decided to scrap 60 per cent customs duty on raw sugar under open general licence (OGL), as in the case of import under advance licence scheme (ALS).
However, under OGL scheme mills will get advantage to import the raw variety at zero duty without export obligation. Under ALS, mills have to export equivalent quantity of refined sugar within a particular period.
May import 3 million tonnes of raw sugar
PTI adds: India may import 3 million tonnes of raw sugar because of the higher local prices and exemption from an obligation to export a similar quantity of refined sugar, an officials said today.
Indian mills have contracted to import 1.5 million tonnes of raw sugar so far in the year ending September, and of that 700,000 tonnes has already arrived, the report said yesterday.
- Reuters
(The Business Standard : 14.4.2009)
