Thursday, 24 July 2008

Palm oil export tax lowered

The government has reduced export taxes for palm oil products in May to bring them in line with international prices, the trade ministry said on Friday, Reuters reported.
The export tax for crude palm oil in May will be cut to 15% from 20% in April.
The base export price for crude palm oil will be cut to $1,082 a ton from $1,196 in April, while the export price for RBD palm olein, used as cooking oil, will be down to $1,229 a ton compared to $1,303 in April. The base price and export tax will be valid from May 1 to the end of the month.
The base export price is used to calculate export tax paid by exporters.
Crude palm oil makes up 45% of the country's palm oil exports. Higher priced palm oil by-products such as RBD palm olein make up the rest.
The government meanwhile introduced mandatory checks on vessels carrying crude palm oil and its derivatives from April 24 in a bid to curb smuggling of the commodities, quoted Ardiansyah Parman, director-general for domestic trade, as saying Tuesday.
Cargo records will be cross-checked to ensure the volume and type of palm oil being shipped from one domestic port tallies with that unloaded at the next port of berth, Dow Jones reported.
The move comes after the government found some palm oil that was only allowed to be sold locally being smuggled overseas, said Parman.

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