Higher tax burden for plantation firms

FFortress Capital Asset Management CEO Thomas Yong (pic) told StarBiz that the 8% CPO export duty would negatively affect pure upstream players in Malaysia.

PETALING JAYA: With the rally in crude palm oil (CPO) prices owing to stronger global demand and lower production, the world’s two largest palm oil exporting countries, Indonesia and Malaysia, are taking advantage of the higher prices through increased taxes on the commodity.

In just weeks after Indonesia raised its taxes on CPO exports, Malaysia has followed suit by re-imposing the export duty on the vegetable oil starting January 2021 at a rate of 3%-8% for CPO prices above RM2,250 per tonne.