Plan to up export tax on commodities opposed<\/p>\n
Zakki P. Hakim
\nThe Jakarta Post\/Jakarta<\/p>\n
The Ministry of Finance's plan to increase tax revenue from
\nthe export of plantation commodities would discourage the
\nindustry from exporting the commodities, which in turn would
\neventually reduce state revenue, an official with the Ministry of
\nIndustry and Trade said on Tuesday.<\/p>\n
Ministry of Industry and Trade official Sabar H. Pasaribu said
\nthat his office had opposed the plan as it would hamper the
\nexport of key commodities such as crude palm oil (CPO).<\/p>\n
According to Sabar, the Ministry of Finance planned to
\nincrease the tax revenue by using the market price as the export
\nbase price (HPE) instead of the current fixed price of US$160 per
\nton for CPO.<\/p>\n
Exporters would then pay 3 percent of the HPE as tax.<\/p>\n
Using the average CPO market price of $400 per ton, exporters
\nwould have to pay $12 per ton of exported CPO, or 250 percent
\nhigher than the current rate of $4.8 per ton.<\/p>\n
Sabar said that the export tax mechanism was originally aimed
\nat regulating exports, not as a source of tax income for the
\ngovernment.<\/p>\n
The country's CPO export volume is projected to increase by
\n7.69 percent this year to 7 million tons from 6.5 million tons
\nlast year.<\/p>\n
Production is projected to slightly increase to 10.4 million
\ntons from 9.9 million tons last year.<\/p>\n
Indonesia exports CPO to China, India, Pakistan, Bangladesh,
\nthe Netherlands and new markets such as eastern Europe.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/plan-to-up-export-tax-on-commodities-opposed-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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