KUALA LUMPUR: Malaysia will cut its export duty rate on crude palm oil from January as the country seeks to boost shipments, according to Primary Industries Minister Teresa Kok.
The move is to encourage exports of palm oil and reduce the burden on exporters during this low price period, Kok says on Monday.
The new export duty structure, which will come into effect from January, will see a lower rate of 3% for when FOB prices for CPO are in the RM2,250 and RM2,400 a tonne range, compared to 4.5% currently
Maximum tax rate lowered to 8% when prices are above RM3,450 a tonne, from 8.5% currently.
Palm oil exports in September slumped 19% month-on-month, according to the Malaysian Palm Oil Board, dropping more than expected.
Malaysia’s palm oil exports fell 19.6% on-month to 344,330 tons in Oct 1-10 compared to a month earlier, according to Intertek Testing Services.- Bloomberg