Indonesia raises CPO export tax rate to 6.5 pct from 1.5 pct - UPDATE
(Updating with official comment, background on exports estimate) -
JAKARTA (XFN-ASIA) - The government has raised the export tax rate on crude
palm oil (CPO) to 6.5 pct from 1.5 pct, effective immediately, in a move aimed
at helping stabilize domestic cooking oil prices, Coordinating Minister for
Economic Affairs Budiono said.
Palm oil is typically used for cooking in Indonesia, and supply tightness
caused by high levels of exports has been putting upward pressure on the
domestic price.
"Hopefully, the cooking oil price can now decline to its normal level,"
Budiono told a briefing, without elaborating on what a desirable price level
was.
He said the tax rates on exports of palm fruits and other refined products,
have also been raised.
Separately, deputy coordinating minister Bayu Krisna Murti said the government
will evaluate the impact of the tax rate hike every three months.
He noted that the tax increase is supposed to be a "short-term policy" but
he did not elaborate further.
The CPO producers association has estimated the country's CPO exports will
reach 11.7 mln tons this year, up from an estimated 11.3 mln in 2006.
Nationwide, CPO output is seen rising to 16.4 mln tons this year from 15. 0
mln estimated in 2006.
[EMAIL PROTECTED] xfnab/xfnmb/xfnab/xfnmb MMMM ONP36-15Jun07 10:57
GMT
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