Indonesia palm oil zero export tax until yr-end

Posted by Me and Me at 15:39

Indonesia plans to maintain its zero percent palm oil export tax until the end of the year in a bid to shore up palm oil exports amid an expected slowing demand due to global economic weakness, an official said on Wednesday.
"We will implement the zero tax from Nov. 1. By our calculation, it will remain zero for November and December due to the price fall," Bayu Krisnamurthi, deputy to the chief economic minister, told reporters.
The government previously set a 2.5 percent tax rate for palm oil exports in November, down from 7.5 percent for October. [ID:nSP80301]
However, Finance Minister Sri Mulyani Indrawati said on Tuesday that the export tax on crude palm oil had been cut to zero percent, as part of a package of measures intended to shore up confidence in the financial markets. [ID:NSP392946]
Indonesia, the world's top producer of palm oil -- used in a wide range of products, from soap to biodiesel -- is forecast to produce 18.6 million tonnes of crude palm oil this year, compared with 17.2 million tonnes in 2007.
"By removing the tax, it is expected to help exporters and support the price of oil palm fruit for farmers," Agriculture Minister Anton Apriyantono told reporters on Wednesday.
The government also plans to remove import taxes for cocoa powder used in the food and beverages industry and carbon black, a raw material derived from petroleum, used by the tyre industry, to help cut costs to those industries, Apriyantono said.
Cocoa powder -- used to make biscuits and chocolate drinks -- has a 5-15 percent import tax and carbon black, which is imported from South Korea, Thailand and India, is subject to an anti-dumping import duty of 7-10 percent.

 

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