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.