ID :
62957
Thu, 05/28/2009 - 12:48
Auther :
Shortlink :
https://www.oananews.org//node/62957
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CPO EXPORT TAX PLAN NEEDS RECONSIDERING: BIZMAN
Jakarta, May 28 (ANTARA) - The government needs to reconsider its plan to impose a export tax on crude palm oil (CPO) exports beginning in June 2009.Indonesian Palm Oil Businessmen Association (Gapki) Secretary General Joko Supriyono said.
"Gapki is not questioning the three percent tax but the policy to impose the tax on CPO exports as it would reduce the competitive edge of Indonesia's exports in the world market," Supriyono said.
The government will impose a three-percent tax on CPO exports as of June 2009. He said that the export tax was an odd policy and should be reviewed. The government should explain the reason behind its plan to impose the tax.
According to Joko Supryiono, it is not correct if the government imposes the export tax in an effort to protect industries at home. Such a policy should be issued not for the state but for the benefit of producers and for subsidizing cooking oil.
"The export tax that has previously been imposed since 2001 turned out to be unable to offset the increasing price of cooking oil and to develop industries at home," he said.
According to Supriyono, of the country's estimated 20 million tons of annual CPO production, only about four to five million tons are consumed at home while the remaining ones are exported.
"It should not happen that we protect the five million tons but sacrifice the remaining 15 million tons," he said.
Indonesia is the world's biggest crude palm oil (CPO) producer with an annual production of about 20 million tons. In 2009, Indonesia's CPO production is expected to reach 19.8 million to 20 million tons, an increase from 17 million to 18.6 million tons in the previous year.
"Gapki is not questioning the three percent tax but the policy to impose the tax on CPO exports as it would reduce the competitive edge of Indonesia's exports in the world market," Supriyono said.
The government will impose a three-percent tax on CPO exports as of June 2009. He said that the export tax was an odd policy and should be reviewed. The government should explain the reason behind its plan to impose the tax.
According to Joko Supryiono, it is not correct if the government imposes the export tax in an effort to protect industries at home. Such a policy should be issued not for the state but for the benefit of producers and for subsidizing cooking oil.
"The export tax that has previously been imposed since 2001 turned out to be unable to offset the increasing price of cooking oil and to develop industries at home," he said.
According to Supriyono, of the country's estimated 20 million tons of annual CPO production, only about four to five million tons are consumed at home while the remaining ones are exported.
"It should not happen that we protect the five million tons but sacrifice the remaining 15 million tons," he said.
Indonesia is the world's biggest crude palm oil (CPO) producer with an annual production of about 20 million tons. In 2009, Indonesia's CPO production is expected to reach 19.8 million to 20 million tons, an increase from 17 million to 18.6 million tons in the previous year.
