JAKARTA: Indonesia, the world’s top crude palm oil (CPO) producer, may hike
an export tax on the vegetable oil to 12.5 per cent in December, a
move that would potentially cut exports for the month.
A
higher export tax would make Indonesia’s palm oil more expensive
compared to rival Malaysia amid expected slower demand for the
reddish-brown oil in winter months.
“Looking at the
movement of palm oil prices in past months, the export tax in December
is likely to be raised to 12.5 per cent,” said Joko Supriyono,
secretary general of the Indonesian Palm Oil Association.
Crude palm oil is currently subject to a 10 per cent export tax.
A 12.5 per cent tax level would be the highest export tax rate for
this year. Some traders also said there is the possibility that export
tax could be 15 per cent in December. – Reuters
Source : Business Times
