Gapki demands zero tax for Russia-bound CPO<\/p>\n
M. Taufiqurrahman, The Jakarta Post, Jakarta<\/p>\n
The Indonesian Palm Oil Producers Association (Gapki) demanded on
\nFriday that palm oil products to be exported to Russia under a
\ncountertrade agreement be exempted from taxes.<\/p>\n
Gapki chairman Derom Bangun said that tax exemptions would
\nhelp producers offer a competitive price to the State Logistics
\nAgency (Bulog), which would deliver the products to Russia.<\/p>\n
Under the countertrade deal, signed by President Megawati
\nSoekarnoputri during a recent visit to Russia, Indonesia will get
\nSukhoi Su-27 and Su-30 jet fighters and Mi-35 helicopters from
\nRussia in return for Indonesian commodities.<\/p>\n
To meet the US$192 million deal, Gapki is set to deliver about
\n300,000 metric tons of palm oil products valued at $108.5 million
\nto Russia until next year. Palm oil products will make up 65
\npercent of all commodities to be traded with Russia.<\/p>\n
\"The zero taxation must be imposed on palm oil products
\nshipped to Russia, otherwise our exporters would bear more costs
\nfor their supply,\" he said, adding that the current taxes were 3
\npercent for crude palm oil and 1 percent for its derivative
\nproducts.<\/p>\n
Derom said that should the tax be reduced or abolished,
\nproducers here could lower the price of palm oil to be shipped to
\nRussia.<\/p>\n
He also complained that Bulog, which would act as the sole
\npurchaser of palm oil products from local suppliers, set a number
\nof restrictive requirements, which would limit companies eligible
\nto provide products to it.<\/p>\n
\"There are requirements that may hinder small producers from
\ntaking part in the countertrade deal, such as the obligation to
\nhave accounts in a certain bank or to give a guarantee if their
\nproducts are denied by Russia,\" he said, on the sideline
\nof an extraordinary meeting of Gapki here.<\/p>\n
With the coordination from Bulog, the association is expected
\nto preliminary ship 42,000 metric tons of palm oil products to
\nRussia in June. By the end of this year, Gapki will send a total
\nof 100,000 metric tons, while the delivery of another 200,000
\nmetric tons will be completed in 2004.<\/p>\n
Indonesia is the world's second-largest palm oil producer
\nafter Malaysia. In 2002, Indonesia exported 6.34 million metric
\ntons of palm oil products valued at $2.1 billion.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/gapki-demands-zero-tax-for-russia-bound-cpo-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}