Malaysia Raises Export Duty on Palm Oil to a Maximum of 10%

This is reported by AgroReview

Malaysia has increased the export duty on crude palm oil to 10% in May, following a rise in the reference price for this product. According to an official circular released by the Malaysian Palm Oil Council, the duty increase is due to the adjustment of the reference price used for calculating export payments.

Details of Updated Rates and Prices

According to the new calculations, the reference price for May is set at 4,521.89 ringgit per ton, which is approximately equivalent to 1,143 US dollars. In comparison, in April, this figure was 3,935.19 ringgit per ton, at which point the export duty was 9.5%.

Market Impact and Future Prospects

Malaysia, which ranks second in the world for palm oil exports, employs a progressive tax scale. The base rate is 3% for price ranges between 2,250 and 2,400 ringgit per ton. The maximum rate of 10% applies when the price exceeds 4,050 ringgit per ton.

The increase in duty reflects the rise in global palm oil prices and may impact global vegetable oil markets. Experts note that such changes could affect both the cost of products for importers and the income of producers in the region.

The current dynamics of prices and Malaysia’s tax policy may influence the global balance of supply and demand for palm oil, as well as the prices of vegetable oils in global markets.