KUALA LUMPUR: The export duty rates for crude palm oil (CPO) have been revised to ensure an adequate domestic supply of the commodity.
The move also aims to boost processing and downstream activities to produce higher value-added products such as biodiesel and oleochemicals, the Ministry of Finance (MoF) said today.
According to an appendix released alongside the Budget 2025 presentation, the Ministry of Finance announced that the revised CPO export duty rates will take effect on Nov 1, 2024.
The export duty for CPO priced at RM2,250 per metric tonne and below will remain at zero per cent, followed by 3.0 per cent for prices between RM2,250 and RM2,400, 4.5 per cent for RM2,401-RM2,550, 5.5 per cent for RM2,551-RM2,700, and 5.5 per cent for RM2,701-RM2,850.
The rate will increase to 6.0 per cent for CPO priced between RM2,851 and RM3,000, and 6.5 per cent for prices between RM3,001 and RM3,150.
For CPO priced between RM3,151 and RM3,300 per metric tonne, the export duty will be set at 7.0 per cent, followed by 7.5 per cent for RM3,301-RM3,450, 8.0 per cent for RM3,451-RM3,600, 8.5 per cent for RM3,601-RM3,750, 9.0 per cent for RM3,751-RM3,900, and 9.5 per cent for RM3,901-RM4,050.
The rate will be 10 per cent for CPOs priced above RM4,050 per metric tonne.
To further support the sustainability of the palm oil industry, the MoF proposed revising the windfall profit levy threshold to 3.0 per cent for both Peninsular Malaysia and Sabah and Sarawak.
The new threshold prices will be set at RM3,150 per metric tonne for Peninsular Malaysia and RM3,650 for Sabah and Sarawak, effective Jan 1, 2025. - Bernama
