Indonesia May Hike CPO Export Tax

JAKARTA: Indonesia, the world’s top crude palm oil (CPO) producer, may hike

an export tax on the vegetable oil to 12.5 per cent in December, a

move that would potentially cut exports for the month.

A

higher export tax would make Indonesia’s palm oil more expensive

compared to rival Malaysia amid expected slower demand for the

reddish-brown oil in winter months.

“Looking at the

movement of palm oil prices in past months, the export tax in December

is likely to be raised to 12.5 per cent,” said Joko Supriyono,

secretary general of the Indonesian Palm Oil Association.

Crude palm oil is currently subject to a 10 per cent export tax.

A 12.5 per cent tax level would be the highest export tax rate for

this year. Some traders also said there is the possibility that export

tax could be 15 per cent in December. – Reuters

Source : Business Times

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