Pakistan is likely to reduce the import duty on palm oil in December as domestic prices have started surging, industry officials told Reuters on Wednesday.
"The duty cut should be coming in December," said the industry source, who closely tracks developments in the government.
Amjad Rasheed, chairman of the private Pakistan Vanaspati Manufacturers Association, said the group discussed the possible duty cut on the import of palm oil with the Pakistani tax officials.
Pakistan charges a fixed 9,500 rupees ($156.2) a tonne as regulatory and customs duty on palm oil imports, apart from a 15 percent sales tax. Refiners are allowed to import crude palm oil at a duty of 9,000 rupees per tonne.
"We proposed a change in duty structure and have asked the government to charge higher duty when international prices are low, while tax rates should be less when the prices are high," Rasheed said.
"They agreed to discuss this proposal with us and hopefully another meeting will be held in the second week of December."
The local edible oil prices have increased almost 25 percent during the last one and a half months to 1,120 rupees per 40 kg.
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