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Accelerating cocoa processing in Côte d'Ivoire: the government abolishes the DUS mechanism

27/12/2023
Source : ORISHAS FINANCE
Categories: Raw materials

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For a decade, the country of Ivorians has been committed to accelerating cocoa processing. Its policy was based on incentives for private sector investment. But the government recently abolished the Single Exit Right (SUS) mechanism.

The Ivorian government measure applied since 2017 allowed the application of a tax rate of 13.2% for cocoa mass, 11% for butter and cake, 11% for butter and cake, 9.6% for powder and 0% for chocolate. But with the suspension of this tax advantage, processing companies will have to pay the tax of 14.6% of the CAF price (Cost, Insurance and Freight) that has hitherto applied only to exporters of raw cocoa beans. This new provision should penalize several giants in the sector such as Cargill,Barry Callebaut style="font-family: "Bookman Old Style”, "serif"> and Olam, which have implemented significant industrial investments. in the country for almost 7 years.

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