No big shift seen from CPO export tax cut plan

CGS-CIMB Research regional head of plantations Ivy Ng pointed out that the majority of palm oil exports from Malaysia is processed palm oil products, saying that there may not be a “significant shift” among the plantation companies that are eyeing to export more CPO.

KUALA LUMPUR: The government’s proposal to cut the crude palm oil (CPO) export tax by as much as half starting next month could affect palm oil refiners significantly while the upstream planters will get to enjoy the benefits to a certain extent, say industry experts.

On Tuesday, Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin disclosed that her ministry has proposed to cut the export tax on CPO to 4% to 6% from the current 8%, citing it as “a temporary measure”.