Economic analyst Rudyan Kopot said here on Sunday that the imposition of progressive taxes which were changed in line with the world crude price developments would only put a burden on upstream industry which would then divert it to the farmers.
"What has been imposed now is actually not a progressive exit tax but an aggressive one. With the imposition of this progressive tax farmers could not obtain benefit. Though the price has increased to between 700 and 1,300 US dollar per ton, farmers` income will remain the same," he said.
Rudyan said that if it was calculated the government, with the progressive exit tax, would have a double benefit more than that for the farmers.
"This is unfair. The farmers work hard but most of their proceeds are to be enjoyed by the government," he said.
On the other hand, a flat exit tax would give a positive impact to the developments of upstream and down stream industries.
Earlier, Trade Minister Mari Elka Pangestu said that the government was thinking to open the possibility of imposing a flat exit tax for CPO.
The trade ministry is now working out options on the exit taxes of main commodities. "The proposal for a flat tax is now being studied again and there are now options but no decisions have yet to be made," she said.
On the same occasion, Vice Minister for Trade Mahendra Siregar acknowledged that significant impact of CPO exit tax on the CPO industrial growth and the exports of its by-products was not yet seen.
"Investment in the down stream oil palm industry is not only decided by the imposition of a tax only but also by the fulfillment of other conditions such as infrastructure, connectivity and a conducive investment climate," he said.(*)
Editor: Aditia Maruli Radja
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