Malaysia lowers August crude palm oil export tax to 5.5%

FILE PHOTO: A worker collects palm oil fruit inside a palm oil factory in Sepang, outside Kuala Lumpur, Malaysia February 18, 2014. REUTERS/Samsul Said/File Photo

KUALA LUMPUR: Malaysia, the world’s second-largest palm oil producer after Indonesia, will lower its crude palm oil export tax to 5.5% in August from 6.5% in July, according to a government circular on Monday.

The South-East Asian nation calculated a palm oil reference price of RM2,699.54 per tonne for August. A price above RM2,250 incurs a tax, which starts from 4.5% and can reach a maximum of 8.5%.

Palm oil benchmark prices were last down 0.04% at RM2,550.

Malaysia had last raised the tax to 6.5% in July after earlier lowering it for three consecutive months. - Reuters