Jakarta (ANTARA News) - The government is set to impose a progressive tax in the range of 0-10 percent on crude palm oil (CPO) exports starting September 1, an Agriculture Ministry official said.
"Until now, we have been adopting a new policy (on CPO exports) once every three months. In the future, there will only be a single policy. Tonight (Wednesday night) we will finalize the policy which will take effect September 1," Director General of Plantations Ahmad Manggabarani said here Wednesday.
At a meeting to be held in Bali on Wednesday night, he said, the government would decide the range of the increase in the percentage of taxes on CPO exports.
"Malaysia has already adopted such a policy. If the CPO price increases by a certain amount, the export tax will rise by a certain amount too by referring to the table. Given the instrument, there will no longer be a change in the policy," he said.
The progressive tax would likely be applicable to the export of CPO and its by-products, he said adding the government wanted palm kernel not to be exported so that it could be processed at home.(*)