RI plans to axe CPO tax

RI plans to axe CPO tax

JAKARTA (Reuters): Indonesia plans to axe its taxes on exports
of crude palm oil (CPO) and palm oil by-products this month to
make its products more competitive internationally, a senior
trade ministry official said on Wednesday.

"The plan to cut CPO and palm oil by-products taxes to zero
percent has been recommended by a tariff team," international
trade director-general Djoko Muljono told Reuters.

The plan, which must be signed off by Finance Minister Bambang
Sudibyo, is expected to be implemented after the annual session
of the top legislature which ends on Friday, to avoid any unrest
during the assembly.

Muljono said the recommendation was made due to Malaysia's
decision to allow duty-free CPO exports and India's plan to hike
its import duty on edible oils.

Indonesia, the world's second largest CPO producer, imposes a
10 percent export tax on CPO, six percent on palm olein, eight
percent on refined bleached deodorized (RBD) palm oil and six
percent on crude palm olein.