CPO exports predicted to increase following France’s abolition of progressive tax

“We hope that the Ambassador, who also cares deeply about our palm oil issue, will help disseminate the information about sustainable palm oil, which Indonesia is currently implementing,” Airlangga said in a press release in Jakarta on Thursday.To implement this, the Indonesian government is following up the decision through dissemination and outreach, particularly regarding the positive achievements of Indonesian palm oil products.The Minister of Industry shared this after meeting the Indonesian Ambassador to France Hotmangaradja Pandjaitan at the Ministry of Industry.According to Airlangga, this outreach needs to be carried out comprehensively and through coordination with all stakeholders with a specific campaign strategy that targets the right people.It is important to note that Frances parliament (Assemble Nationale) recently strengthened the Senates decision to cancel the progressive tax that was set to be imposed on palm oil in the draft of Frances Biodiversity Bill. The decision was confirmed on July 20, 2016 after several intensive discussions and votes in the Senate and Parliament.Beforehand, the progressive tax was set at 300 euros per ton in 2017, 500 euros per ton in 2018, 700 euros per ton in 2019, and 900 euros per ton in 2020.However, through negotiation, the progressive tax was changed to 30 euros per ton in 2017, 50 euros per ton in 2018, 70 euros per ton in 2019, and 90 euro per ton in 2020 before being canceled completely.After six months of implementing the Biodiversity Act on January 1, 2017, the French government will prepare a more simple and harmonious fiscal policy that is non-discriminatory, includes all types of vegetable oil that circulate in France, and prioritizes sustainability.Airlangga conveyed that France is a country that pays careful attention to environmentally friendly aspects of palm oil production, particularly with regards to deforestation and climate change.“Thus, we are synchronizing to increase and facilitate CPO exports to France,” he said.Moreover, Airlangga continued, the Indonesian government is aggressively promoting expanding the export market for agro-industrial products to the European Union countries.For CPO and its derivatives, the volume of Indonesian exports to the world is approximately 21-22 million tons, to the European Union is approximately 3.4-4 million tons, whereas to France is approximately 50 thousand to 150 thousand tons per year.Meanwhile, the production of CPO and its derivatives in Indonesia reached 32.5 million tons in 2015, an increase of 3 percent compared to total production in 2014, which was 31.5 million tons.
Editor: Ruslan Burhani
http://www.antaranews.com/berita/595463/ekspor-cpo-diprediksi-naik-pasca-pembatalan-pajak-progresif-prancis