NEW DELHI, May 15 (Reuters) - Indian vegetable oil importers will challenge a government order asking them to pay an extra 4 percent tax on imports, the Hindu Business Line newspaper reported on Friday.
The tax, called countervailing duty (CVD), is usually levied to protect local producers.
"There is no excise duty on edible oils. Therefore, the claims of CVD are not justified," the paper said quoting trade sources. Excise duty is a tax on domestic producers.
The customs department has asked many importers to pay the tax on vegetable oils brought into the country since Dec. 7, the paper said quoting unamed trade sources.
India allows tax free import of crude edible oils, while imposes flat 7.5 percent on refined varieties.
Source : REUTERS INDIA