Progressive tax burden CPO

JAKARTA - palm oil producers in the country urged the government to review the application of export taxes (PE) for CPO (crude palm oil / crude palm oil), because the nominal tax applies progressively following the increase in global CPO prices. Application of PE CPO progressively assessed instead reduce the competitiveness of Indonesian palm oil products compared to competitor countries Malaysia.

"Currently only the CPO price reached 1,000 U.S. dollars / ton export tax was at 15 percent. Seeing the trend of world crude palm oil prices continue to rise in December is likely magnitude export taxes will rise even more as a progressive scheme established by the Ministry of Finance, "said Executive Director of the Indonesian Palm Oil Association (Gapki) Fadhil Hasan in Jakarta, yesterday.
According to Fadel, since the progressive implementation of PE CPO, the competitiveness of Indonesian CPO in the world market has decreased. It is feared could affect foreign investment and expansion plans of oil palm plantations that have been announced by the investors in the country. "We assess the application of PE in progressive scheme is completely ineffective.

In this case the government is only thinking about how to attract a maximum tax of CPO is exported commodities, but do not think the impact on crude palm oil producers in the country, "said Fadhil. Moreover, the Fadhil states, with the cost structure out of a very large, the resulting Indonesian CPO products become less competitive in international markets again.

Moreover, during this, the PE utilization is 100 per cent palm oil into the state treasury without contributing back to support the oil palm industry development program. "Gapki urged the government to immediately review the application of PE CPO with progressive scheme which has been judged to be effective and only reduce the competitiveness of Indonesian palm oil products," said Fadhil.

Contacted separately, Secretary General of the Indonesian Palm Oil Association (Gapki) Joko Supriyono said national CPO industry is hoping the government can create a conducive climate in the country such as through the application of rules that do not burden the cost of their production.

"The climate is conducive to valuable incentives for the industry in the face of various obstacles CPO exports in international markets," said Joko. Ministry of Commerce (Kemendag) had earlier set a reference price of CPO for the month of December 2010 amounted to 1081.51 U.S. dollars per ton.

Thus, the determination of charge out of CPO in December 2010 by 15 percent, up from previously 10 percent. Previously, the customs exit CPO period of November 2010 amounted to 10 percent. This figure increased by 2.5 percent compared to September 2010 are set at 7.5 percent.



Source : Newspapers Jakarta, December 14, 2010