Malaysia maintains 8% export tax for crude palm oil, increases reference price for September

Malaysia has decided to keep its export tax for crude palm oil at 8% for the month of September, according to a circular on the Malaysian Palm Oil Board website. Additionally, the country has increased its reference price for the same month. The reference price for September has been calculated at 3,755.13 ringgit ($808.08) per metric ton, higher than the August reference price of 3,614.28 ringgit per metric ton.

The export tax structure in Malaysia starts at 3% for crude palm oil in the price range of 2,250 to 2,400 ringgit per ton. The maximum tax rate of 8% is applied when prices exceed 3,450 ringgit per ton.

Crude palm oil plays a significant role in Malaysia’s economy as one of the country’s major exports. As the world’s second-largest palm exporter, any changes in export tax and reference prices can have a significant impact on the industry and global palm oil markets.

The maintenance of the 8% export tax for September suggests a stable business environment for the palm oil sector. The increase in the reference price indicates a positive trend in the market, as it reflects higher demand and value for palm oil.

This decision by Malaysia will not only affect local palm oil producers and exporters but also have implications for international buyers and traders. The fluctuation in export tax and reference prices may influence pricing strategies and trade patterns within the palm oil industry.

In conclusion, Malaysia’s decision to maintain the 8% export tax for crude palm oil and increase the reference price for September showcases the country’s commitment to the stability and growth of its palm oil sector. This move will have an impact on both domestic and international stakeholders, shaping market dynamics and trade flows in the palm oil industry.

Tags: reference price, Crude palm oil, Malaysia, Malaysian Palm Oil Board, export tax