ISLAMABAD, May 22: The National Tariff Commission (NTC) has sought feedback from all stakeholders for reduction in import duty on crude palm oil (CPO).

Pakistan Edible Oil Refineries Association (PEORA) has submitted an application with the NTC seeking reduction in customs duty on crude palm oil from Rs9,000 per ton to Rs8,000.

An official announcement issued here on Tuesday said that PEORA in its application stated that the biggest hindrance in the manufacturing of RBD palm olien is the existing tariff structure. It is uneconomical for the refineries to put up an additional fractionation equipment without any incentive or duty differential between CPO and refined palm olien.

According to the application the vanaspati manufacturing units throughout the country would not only be making savings in foreign exchange but would get fresh refined edible oil locally, having longer shelf life and free from impurities.

The edible oil refining industry is paying duty on 100 per cent volume of CPO. While refining CPO into RBD palm oil, the refineries get 94 percent as refined oil and 5 per cent of volume as palm fatty acid distillate (PFAD). The sales price of PFAD is almost half the price of RBD palm oil. This results in the increase in cost of RBD palm oil refineries.

The NTC will hold a public hearing on May 30 to consider the proposal after listening to the proposals of all the stakeholders.