InfoSAWIT, BRUSSEL – Avoiding income tax on biodiesel from Indonesia to European Union (EU) triggered tension between both parties. Prior, EU published European Union Deforestation Regulation (EUDR) to limit every product that had something to do with deforestation. It is predicted to raise palm oil import barrier because its main suppliers are from Indonesia and Malaysia.

Through Board of European Biodiesel, the institution accused biodiesel from Indonesia tried to avoid income tax. The institution also noted the palm oil imports delivered losses for about €221 million in 2022.

As quoted from Reuters, the institution is in cooperation with EU authority to solve biodiesel import fraud from China, as in the official statement.

Germany in the early of this year also asked for EU Commission to investigate the imports from China when many industries in the country worried that palm oil biodiesel imports might be recycled and having cheap – quality oil. (T2)