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The Indonesian government has reduced its maximum crude palm oil (CPO) export tax rate, AgriCensus reported to the country's finance ministry on June 20.
Export tariffs would be reduced by US$ 80/tonne – from US$ 175/tonne to US$ 255/tonne – to be applied when palm oil prices exceed the US$ 1,000/tonne threshold, according to the report.
The change was the first time the export tax had been changed since February, AgriCensus said.
Export tariffs would be US$ 50/tonne when palm oil prices reach a minimum of US$ 750/tonne.
For every US$ 50/tonne increase in price, the tariff would increase US$ 50/tonne for palm oil and US$ 16/tonne for products – up to a ceiling of US$ 175 when the CPO exceeded US$ 1,000/tonne – the report said.
An announcement of the July benchmark price and tax rate for palm oil was also expected to be announced, but it was widely anticipated that these would fall due to lower palm oil prices, AgriCensus wrote.
The lower rates were seen against a backdrop of the lowest CPO prices since May, with CPO prices in Indonesia falling to US$ 1,045/t in mid-June, a reduction of 18% from their peak in early May, according to with data from Palm Oil Analytics.
Source: OFI Magazine
This text was automatically translated from English.
