Crude palm oil export tax to rise to 6.5% in October

A worker arranges palm oil fruits at a factory in Sepang. Malaysia accounts for 33.1% of the world

KUALA LUMPUR: The crude palm oil export tax will increase to 6.5% in October from 5% currently.

The Royal Malaysian Customs Department said in a circular the new tax was calculated based on a reference price of RM2,879.47 per tonne. 

The circular, made available on the Malaysian Palm Oil Board website, states, if the price is below RM2,250 per tonne, the tax is nil.

However, a 4.5% tax would be incurred, should the price move above RM2,250 per tonne.

If the price ranges between RM2,851 and RM3,000 per tonne, then a 6.5% tax would be levied on exporters.

The tax can go up to a maximum 8.5%.

Malaysia is the world's second-largest palm oil producer after Indonesia.

Last month, Malaysia's palm oil exports rose by 30.89% to 1.81 million tonnes against 1.38 million tonnes in July. - Bernama