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INDONESIAN CACAO BODY ASKS GOVT TO PUT US$50 TAX ON SEED EXPORTS.
JAKARTA, April 1 Asia Pulse - Indonesia's Cacao Industries Association (AIKI) has asked the government to impose a US$50 tax on every ton of cacao seeds to be exported in an effort to increase the competitive edge of Indonesia's processed cocoa products in the world market.
"Downstream cacao producer countries exempt cacao seed imports from import duties but impose duties on export of processed cacao products such as cacao powder and cacao butter," AIKI Chairman Pieter Jasman said here on Monday.
Jasman said the government should impose a tax on export of cacao seeds in order to increase the competitive edge of Indonesia's processed cacao products on the world market.
He said demand for processed cacao products such as cacao butter was high in the European market. But Europe was imposing a six per cent import duty on cacao butter while exempting cacao seed imports from duties.
"As the second biggest cacao seed producer in the world after Ivory Coast, Indonesia with an annual cacao seed production of 700,000 tons should be able to develop its cacao processing industry," Jasman said.
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Source: HighBeam Research, INDONESIAN CACAO BODY ASKS GOVT TO PUT US$50 TAX ON SEED EXPORTS.