04 Feb 2016
"The policy plan demonstrates exceptional arrogance and is not reasonable," If France continues to demand to implement progressive tax on CPO imports, it could damage the countries’ relationship, which has been developing very well and has been amicable since Indonesia's independence," he said through a press release received in Jakarta, Wednesday.
The plan to set taxes is outlined in a draft amendment to Act No. 367 regarding Biodiversity decided upon by the French senate on January 21, 2016.
In the bill, progressive taxes are added for palm oil production, which will begin to be applied in 2017.
The details of the plan are: a tax of 300 euro/ton in 2017, 500 euro/ton in 2018, and 700 euro/ton for 2019.
The tax goes up again to 900 euro/ton in 2020. After 2020, the tax will be determined by the French Minister of Finance.
Specifically for palm oil used in food products, the bill sets out additional duties of 3.8 percent. While for kernel oil that is utilized for food products, additional duties of 4.6 percent will be applied.
Strangely enough, the tax will not be imposed on canola seeds, sunflowers, soybeans, or vegetable oils produced in France.
Rizal, who is also the Board of Directors of the Council of Palm Oil Producing Countries (CPOPC), said that the CPO tax amendment demonstrates a discriminatory move against Indonesian products as the largest palm oil producer.
In fact, current CPO import taxes in France are at 103 euros per ton.
With a tax increase of 300 euros or around 430 US dollars per ton, it will certainly kill palm oil farmers and Indonesian CPO producers.
"France’s exaggeratedly unfriendly attitude is clear and has the deliberate strategy of killing Indonesia’s palm oil industry," he said.
Rizal added that the plan will kill the livelihoods of 2 million small Indonesian palm oil farmers with land areas of less than 2 hectares and 400,000 small Malaysian palm oil farmers.
"Please be aware that our palm oil industry employs 16 million people and generates exports valued at 19 billion US dollars," he said.
According to the Minister of Finance for former President Abdurrahman Wahid, the plan to impose progressive taxes on CPO imports is seen as conflicting with the basic principles of the French people, which are "liberty, equality, fraternity" (freedom, equality, and brotherhood), particularly aspects of equality and brotherhood.
With these basic principles, France essentially really pays attention to aspects of humanism and welfare, including the welfare and the human aspects of the people of developing nations.
The policy, Rizal continued, also conflicts with the "Amsterdam Declaration in Support of a Fully Sustainable Palm Oil Supply Chain by 2020" signed in Amsterdam on December 7, 2015 by representatives from Denmark, Germany, the Netherlands, England, and France themselves.
The Government of Indonesia also feels that the very unfriendly policy violates Bestimmungen of the World Trade Organization (WTO) and the General Agreement on Tariffs and Trade (GATT) 1994, which are essentially declaring that a country's laws should not discriminate against similar product imports.
Indonesia itself has worked hard to implement standards based on ecological considerations for managing the palm oil industry, which are outlined in Indonesian Sustainable Palm Oil (ISPO).
The progressive CPO tax, which funding from will enter the French social agency, is also deemed by Rizal to be ironic because 2 million Indonesian small palm oil farmers will have to subsidize welfare funding for the French people.
"With that in mind, Indonesia is asking for the wisdom of the French government and parliament to stop the amendment process to Law No. 367. Ecological and environmental considerations should not be used as a tool of protectionist policies that are discriminatory and unfair," Rizal concluded.
Editor: Ruslan Burhani
++++++++++++++++
Jakarta (ANTARA News) - Indonesia strongly rejects the plan of the French government to impose progressive taxes on all palm oil-based products.
The First Deputy for Maritime Sovereignty in the Coordinating Ministry for Maritime Affairs, Arif Havas Oegroseno, said at a limited discussion with journalists in Jakarta on Monday, that the plan to impose taxes is contained in a draft law on biodiversity passed by the French Senate on January 21.
"The bill includes taxes on palm oil production, which will come into effect in 2017. The details are 300 euros per ton for 2017, 500 euros per ton for 2018, 700 euros per ton for 2019, and 900 euros per ton in 2020. In fact, right now, we are already subject to a palm oil tax of 103 euros per ton," he said.
For palm oil used in food products, the bill sets out additional duties of 3.8 percent. While kernel oil used for food products will be subject to duties of 4.6 percent.
After 2020, Havas continued, the tax will be increased annually, as determined by the French Minister of Finance.
"Strangely, the tax will not apply to canola, sunflower, and soybean seeds, or
© Inacom. All Rights Reserved.
EN
