ID :
26628
Sun, 10/26/2008 - 13:19
Auther :
Shortlink :
https://oananews.org//node/26628
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GOLKAR BACKS PROPOSAL FOR ZERO PERCENT TAX ON CPO EXPORTS
Medan, N Sumatra, Oct 25 (ANTARA) - The Golkar Party supports the proposal for a zero percent tax on crude palm oil exports, a party cadre said.
"With the CPO prices plummeting now, we fully support the proposal to exempt CPO from export tax for the time being," Leo Nababan, coordinator of the party's election winning body for North Sumatra and Nanggro Aceh Darussalam provinces, said here on Saturday.
By scrapping tax on CPO exports, the move would hopefully drive up the prices of fresh fruit bunches which had fallen to up to Rp150 a kg in North Sumatra due to the global financial crisis, he said.
The shortfall in global CPO prices had a direct impact on oil palm growers in North Sumatra with some of them choosing not to harvest oil palm fruits from their plantations, he said.
"Many palm oil processing plants in North Sumatra have refused to buy palm oil from farmers because they restrict their CPO production. In addition, they still have abundant palm oil stocks," he said.
At least 14 districts in North Sumatra produced palm oil, he said.
"I met with a number of oil palm growers from 14 districts in North Sumatra. They complained about the shortfall in the prices of fresh fruit bunches while at the same time fertilizers remain expensive and scarce," he said.
Only recently, the government lowered tax on CPO exports to 2.5 percent from 7.5 percent effective November 2008.
Consequently, the export reference price of CPO is lowered to US$572 a ton from US$736 a ton previously.
"With the CPO prices plummeting now, we fully support the proposal to exempt CPO from export tax for the time being," Leo Nababan, coordinator of the party's election winning body for North Sumatra and Nanggro Aceh Darussalam provinces, said here on Saturday.
By scrapping tax on CPO exports, the move would hopefully drive up the prices of fresh fruit bunches which had fallen to up to Rp150 a kg in North Sumatra due to the global financial crisis, he said.
The shortfall in global CPO prices had a direct impact on oil palm growers in North Sumatra with some of them choosing not to harvest oil palm fruits from their plantations, he said.
"Many palm oil processing plants in North Sumatra have refused to buy palm oil from farmers because they restrict their CPO production. In addition, they still have abundant palm oil stocks," he said.
At least 14 districts in North Sumatra produced palm oil, he said.
"I met with a number of oil palm growers from 14 districts in North Sumatra. They complained about the shortfall in the prices of fresh fruit bunches while at the same time fertilizers remain expensive and scarce," he said.
Only recently, the government lowered tax on CPO exports to 2.5 percent from 7.5 percent effective November 2008.
Consequently, the export reference price of CPO is lowered to US$572 a ton from US$736 a ton previously.
