Indonesian Export Tax Update

RNS Number : 5359P

M. P. Evans Group PLC

21 June 2022

 

M.P. EVANS GROUP PLC

("the Group" or "M.P.Evans")

INDONESIAN GOVERNMENT ANNOUNCES REVISIONS TO EXPORT TAXES

M.P.Evans Group PLC, a producer of sustainable Indonesian palm oil, notes the recent announcement by the Indonesian government regarding two sets of revisions to its palm-oil export duty and levy. The first set of revisions (shown in table 1 in the Annex) is effective from 14 June 2022 to 31 July 2022 and results in a decrease in the combined duty and levy payable by the Group of up to US$87 per tonne, dependent on the reference price of crude palm oil ("CPO") used, which is closely linked to the cif Rotterdam price. However, for the period up to 31 July 2022, the Indonesian government is also introducing a US$200 per tonne export tariff, to be charged in addition to the export duty and levy.

From 1 August 2022, at which point the export tariff will no longer apply, a second set of revisions (shown in table 2 in the Annex) will be introduced. This will result in a decrease of up to US$47 per tonne in the combined export duty and levy, payable by the Group compared to the duty and levy in place prior to 14 June 2022.

As reported in the trading statement published on 10 June 2022, the Group achieved an average mill-gate price for its sales of crude palm oil of US$1,079 per tonne in the first five months of 2022, compared with US$715 for the same period in 2021. Following the government's revisions to the export duty and levy, coupled with a softening in the cif Rotterdam price, recent mill-gate prices achieved have been around US$750 per tonne.

Management will continue to monitor the situation closely as the new arrangements come into force.

21 June 2022

Enquiries:

M.P. Evans Group PLC	Telephone: [phone]
Peter Hadsley-Chaplin - chairman
Matthew Coulson - chief executive
Peel Hunt LLP (Nomad and joint broker)	Telephone: [phone]
Dan Webster, Andrew Clark, Lalit Bose
finnCap (Joint broker)	Telephone: [phone]
Tim Redfern, Harriet Ward
Hudson Sandler (Financial PR)	Telephone:  [phone]
Charlie Jack, Francis Kerrigan

ANNEX

Table 1 - updated structure to 31 July 2022

Reference price					Net price at top of	Net price under prior
From	To	Levy	Tax	Total	band	structure
0	750	55		55	695	695
751	800	75	3	78	722	722
801	850	95	18	113	737	737
851	900	115	33	148	752	752
901	950	135	52	187	763	763
951	1,000	145	74	219	781	771
1,001	1,050	150	124	274	776	782
1,051	1,100	155	148	303	797	789
1,101	1,150	160	178	338	812	791
1,151	1,200	165	201	366	834	799
1,201	1,250	170	220	390	860	812
1,251	1,300	175	240	415	885	825
1,301	1,350	180	250	430	920	855
1,351	1,400	185	260	445	955	885
1,401	1,450	190	270	460	990	915
1,451	1,500	195	280	475	1,025	945
1,501	and above	200	288	488

Table 2 - updated structure from 1 August 2022

Reference price					Net price at top of	Net price under prior
From	To	Levy	Tax	Total	band	structure
0	750	55		55	695	695
751	800	75	3	78	722	722
801	850	95	18	113	737	737
851	900	115	33	148	752	752
901	950	135	52	187	763	763
951	1,000	150	74	224	776	771
1,001	1,050	165	124	289	761	782
1,051	1,100	180	148	328	772	789
1,101	1,150	190	178	368	782	791
1,151	1,200	200	201	401	799	799
1,201	1,250	210	220	430	820	812
1,251	1,300	215	240	455	845	825
1,301	1,350	220	250	470	880	855
1,351	1,400	225	260	485	915	885
1,401	1,450	230	270	500	950	915
1,451	1,500	235	280	515	985	945
1,501	and above	240	288	528

 

END

 

 

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