Govt cuts CPO taxes to 40%

JAKARTA (JP): The government announced on Friday a reduction in export taxes on crude palm oil (CPO) and some of its by- products to as much as 40 percent starting Feb. 1 in a bid to boost exports and farmers' incomes.

Minister of Finance Bambang Subianto said in a statement: "With the new export tax, it is expected that the country's foreign exchange earnings from exports of CPO and its by-products will increase, as well as incomes of plantation farmers who sell oil palm kernel."

Lowered to 40 percent from 60 percent were exports taxes on CPO, crude palm olein, fresh fruit bunches and oil palm kernel exports. Taxes on refined bleached deodorized (RBD) palm oil and RBD palm olein have been reduced to 32 percent from 55 percent.

It slashed taxes on exports of crude palm kernel oil to 30 percent from 50 percent, and on RBD palm kernel oil to 20 percent from 45 percent.

It also reduced from 40 percent to 25 percent the export tax on RBD olein in branded containers not exceeding 5 kilograms in volume.

It lowered export taxes of crude stearin to 20 percent from 25 percent, and of RBD stearin to 10 percent from 20 percent.

Export taxes of crude coconut oil and RBD coconut oil were also lowered to 15 percent and 10 percent, from 20 percent and 15 percent respectively.

Ministry of Finance spokesman Hadiyanto said the lower export tax should not result in an increase in cooking oil prices on the domestic market because prices have been relatively stable in the past several months. (gis)