You are here

Indonesia issues new export tax rates for palm oil: ministry

Tuesday, July 28, 2015 - 17:28
poil.jpg
Indonesia has issued a regulation that changes the way export taxes are calculated for crude palm oil and other palm products, a Finance Ministry official said on Tuesday, with amounts due now expressed in dollars rather than a percentage of the price.

[JAKARTA] Indonesia has issued a regulation that changes the way export taxes are calculated for crude palm oil and other palm products, a Finance Ministry official said on Tuesday, with amounts due now expressed in dollars rather than a percentage of the price.

The tax revision is intended to help offset the costs exporters must pay alongside new US$50 export levies that came into effect this month.

"This is to make it simpler," Suahasil Nazara, head of the fiscal policy office told reporters.

Under the old system, crude palm oil (CPO) exports were subject to an escalating tax rate of between 7.5 per cent and 22.5 per cent depending on how high prices went above US$750 per tonne.

Now, when palm oil prices exceed US$750, CPO exports are subject to a dollar tax rate running from US$3 to US$200 per tonne, as well as the US$50 levy.

A table of the old and new tax rates for CPO is shown below. Different rates apply to different palm oil products.

REUTERS

Powered by GET.comGetCom