Indonesian govt removes VAT on non-branded cooking oil

he removal of VAT on non-branded cooking oil will reduce the government's revenue by some 300 billion rupiah this year.

The cooking oil price has gone up over the past few years in line with the increase in crude palm oil (CPO) prices in the global market. CPO is the raw material for cooking oil.

In a previous effort to stabilize cooking oil prices, early this month the government increased the tax on CPO exports to a maximum of 10 percent under a progressive tax regime from a fixed rate of 6.5 percent.