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News Admin
 
Date
 10/04/2008
News Provider
 Kamar Nor Aini Bt Kamarul Zaman
News Source
 ANTARA News
Headline
 Govt urged to review 20% rise in export tax on palm oil

09/04/2008 (ANTARA News), Jakarta - The Indonesian Plantation Companies Association (GPPI) has appealed to the government to review its decision to raise progressive tax on palm oil exports to 20 percent.


The increase in progressive tax could reduce oil palm plantation companies` and growers` income, GPPI Chairman Soejai Kartasasmita said on Wednesday.


"On the other hand, the prices of fertilizer and food have been on the increase since the progressive tax on palm oil exports was raised to 20 percent," he said following a meeting between Agriculture Minister Anton Apriyantono and palm oil businessmen here.


Before the progressive tax was raised to 20 percent in January, the price of fresh fruit bunch bought from farmers was Rp1,843 a kg, he said.


But the price fell to Rp1,617 a kg now, he said.


He said the increase in the progressive tax had led to a decline in the selling prices of palm oil as the amount of export tax paid was higher.


Given the 10 percent increase in progressive tax, the price of fresh fruit bunch bought from farmers would fall 27 percent while export tax on palm oil would increase to 141 percent, he said.


He said the minister promised to review the increase in progressive tax so that it would benefit both the government and oil palm plantation companies.(*)


 


ECONOMICS & INDUSTRY DEVELOPMENT DIVISION
Malaysian Palm Oil Board ( MPOB ) Lot 6, SS6, Jalan Perbandaran, 47301 Kelana Jaya, Selangor Darul Ehsan, MALAYSIA.
Tel : 603 - 7802 2800 || Fax : 603 - 7803 3533