Malaysia to impose 8-pct export tax on crude palm oil

Source: Xinhua| 2020-12-22 18:29:43|Editor: huaxia

KUALA LUMPUR, Dec. 22 (Xinhua) -- Malaysia, the world's second largest palm oil producer, will raise its crude palm oil (CPO) export tax from 6.5 percent in December to 8 percent in January next year, according to a Malaysian Palm Oil Board (MPOB) circular Tuesday.

According to the industry regulator, the palm oil reference price for January next year is 3,475.44 ringgit (about 855.81 U.S. dollars) per ton.

Based on the tax structure, no export duty will be imposed on any CPO price below 2,250 ringgit per ton, and an export tax of 3 percent will be imposed when the CPO price ranges between 2,250 ringgit and 2,400 ringgit per ton.

The maximum tax rate is 8 percent when the CPO prices are above 3,450 ringgit per ton.

In June, Malaysia said it would exempt palm oil from export duty from July to December in efforts to support the industry hit by the COVID-19 pandemic. Enditem