Government plans to cut export tax of CPO products<\/p>\n
JAKARTA (JP): The government will further lower the export tax
\nof crude palm oil and its by-products to follow a downward trend
\nof the commodity price overseas, Minister of Industry and Trade
\nRahardi Ramelan has said.<\/p>\n
"I will send a recommendation to lower the export tax to the
\nfinance minister on Monday," he told Bisnis Indonesia on Friday.<\/p>\n
Rahardi said that the government would also cut the reference
\nprice of CPO products in conformity with the downward direction
\nof prices overseas.<\/p>\n
The reference price is used as the base to calculate the
\nexport tax.<\/p>\n
On Feb. 1, the government cut export taxes on CPO and some of
\nits by-products from 60 percent to as much as 40 percent in a bid
\nto boost exports.<\/p>\n
The new reference price is set at US$535 per metric ton for
\nCPO and $580 per metric ton for refined bleached deodorized palm
\nolein or cooking oil.<\/p>\n
Director General of International Trade Djoko Moeljono said
\nthe current 40 percent export tax should be adjusted to market
\ntrends.<\/p>\n
If the export tax is maintained at the current level, it would
\ndiscourage palm oil producers from exporting their commodity,
\nbecause with current price levels, selling the commodity overseas
\nis no longer attractive, he said.<\/p>\n
"The export tax and reference prices should be adjusted to the
\npresent market condition, but we haven't decided yet."<\/p>\n
Meanwhile, the chairman of the Federation of Indonesian Palm
\nOil Producers, Derom Bangun, said that the export tax should be
\nreviewed because it was already too high.<\/p>\n
With the high export tax, CPO producers would also prefer to
\nsell their products at home and this would lead to oversupply in
\nthe domestic market.<\/p>\n
"As a result, prices at home would continue to decline," he
\nsaid.<\/p>\n
A reasonable export tax, he added, is between 20 percent and
\n30 percent, while reference prices should be lowered to between
\n$465 and $470 per ton. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-plans-to-cut-export-tax-of-cpo-products-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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