Indonesia may cut the palm oil export tax to 15 percent in August from 20 percent in July on easing global palm oil prices, a senior industry official said on Friday. "The export tax would be lower in August because palm oil prices in Rotterdam are easing to below $1,200 a tonne," Adi Wisoko, chairman of the Indonesian Edible Oils Producers Association, told reporters after meeting trade officials.
But he said the government was still drafting base prices to calculate the tax. The government imposes a 15 percent export tax if crude palm oil in Rotterdam rise above $1,100 a tonne but stay below $1,200 a tonne. Indonesia, the world's top palm oil producer, adjusts the palm oil export tax monthly based on the movement in international prices.
Crude palm oil makes up 45 percent of the country's palm oil exports. Higher-priced palm oil by-products, such as RBD palm olein, make up the rest. Indonesia is expected to produce 18.6 million tonnes of crude t of global palm oil output.
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