KUALA LUMPUR, May 2 (Xinhua) -- Malaysia, the world's second largest palm oil producer, has extended palm oil export duty tax-exemption period to Dec. 31 from May 1, said its Primary Industries Ministry Thursday.
Its minister Teresa Kok said in a statement that the tax free period would allow industry players to take better strategies to increase palm oil exports and explore new markets.
The exemptions will be granted even if crude palm oil prices hit or exceed 2250 ringgit (about 544 U.S. dollars) per tonne, the chargeable rate in the industry, according to the statement.
Kok hopes the move is able to reduce Malaysia's palm oil stocks which stood at 2.92 million tonnes as of March, and increase crude palm oil prices which hovered at 2014.50 ringgit in April.
The minister will also continue to monitor palm oil stocks to ensure that it is sufficient to meet the country's downstream supply requirements.