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.

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. 

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