The higher export taxes follow the implementation of a new levy structure in Indonesia since December 2020. Under the new structure, the levy payable by exporters for every tonne of CPO exported was increased from a flat rate of US$55 per tonne to a progressive system wherein the levy increases by US$15 per tonne for every US$25 per tonne of increase in market CPO price. The export levy amounts also vary depending on product type, with that for processed products lower than that for CPO.
First Resources has reported a net profit of US$8.8 million ($11.7 million) for the 1QFY2021 ended March, 60.5% lower y-o-y from US$22.2 million previously, caused by higher export taxes.
The decline in net profit comes despite an increase in sales for the period by 40.3% y-o-y from $140.4 million to $196.9 million due to stronger sales volumes from the recovery in production volumes and yields.
