Indonesia: Levies export tax on crude palm oil
Description
According to Dow Jones (25 March 2010), Indonesia raised the crude palm oil (CPO) export tax for April 2010 to 4.5% from 3% in March.
Indonesia uses the average CPO spot price at the port of Rotterdam as a benchmark to set its CPO export tax. The tax, which can reach as high as 25% according to an article by Commodity Online, is imposed to ensure sufficient domestic supplies of the oil when global CPO prices are high by discouraging exports.
Indonesia as being a leading CPO exporter is likely to increase the world CPO price with this practice and thereby harms commercial interests of importers.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered:
Implemented: Yes
Date of inception: 1 Apr 2010
GTA Evaluation: Red
Source:
1) Dow Jones, 25 March 2010 (http://www.palmoilhq.com/PalmOilNews/indonesia-to-raise-april-cpo-export...)
2) Commodity Online, 9 March 2010 (http://www.commodityonline.com/news/Indonesia-to-keep-CPO-March-export-d...)
Government Response:
- 656 reads
