MP Evans Group PLC (AIM:MPE) has noted the announcement by the Indonesian government regarding changes to its export levy for crude palm oil (CPO), which are effective immediately and reduce the amount of duty payable.
Previously charged at graduated amounts and increasing in US$50 per tonne bands, the palm oil producer said the export duty from now will be a flat rate 7.5% export levy.
As before, the levy is set monthly based on a reference price connected to the global CPO commodity price.
There is no change to the separate export tax which continues to be charged in increasing amounts at each US$50 per tonne price band with the combined effect being a reduction in the export levy charged by the Indonesian government.
MP Evans added that it is receiving higher mill-gate prices than the US$771 per tonne average in the first half of the year, with current pricing well over US$800 per tonne.