Hoax 5 : The palm oil industry does not contribute to government revenues.
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Does palm oil industry not contribute to government revenues ?
Aside from being a source of foreign exchange, the export of palm oil and its derivative products is also a source of government revenues, namely from palm oil export taxes (see the figure below). The accumulated government revenues from palm oil export taxes increased from Rp 4.2 trillion in 2007 to Rp 111.6 trillion in 2016.
The data clearly show that the Indonesian palm oil industry also contributes to government revenues. The value of government revenues in the form of palm oil export duty is still greater than the total value of subsidies received by food crop farmers and fishermen for the last five years.
Figure : Government revenues from palm oil export duty (Finance Ministry, 2016)
Value in IDR Trillion
Of course, apart from the export duty, like other economic sectors the palm oil industry is also a source of considerable government revenues from both the property and land taxes, value-added tax (VAT) and income tax. Unfortunately, detailed data cannot be displayed here.