Export Duty
Malaysia to revise export duty on CPO, raise windfall profit levy threshold
This story was originally published at 23:13 IST on 18 October 2024
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MUMBAI – The Malaysian government has decided to revise the export duty on crude palm oil and raise the threshold for a windfall profit levy on palm oil, effective Nov. 1 and Jan. 1, respectively, Malaysian Ministry of Finance said Friday.
The proposed duty on crude palm oil is to ensure the supply of the commodity in the domestic market and encourage midstream and downstream processing activities for the production of value-added products such as biodiesel and oleochemicals, the ministry said. According to the proposed duty, crude palm oil ranging from 3,601–3,750 ringgits per tonne (INR 70,306.28-INR 73,215.38 per tonne) will attract an export duty of 8.5%, while that ranging from 3,751–3,900 ringgits per tonne will have an export duty of 9.0%, it said.
Similarly, an export tax of 9.5% will be levied on crude palm oil priced from 3,901–4,050 ringgits per tonne, and for those priced above 4,050 ringgits per tonne, a 10% export duty has been imposed, according to the government notice. Until now, 8% was the export duty ceiling for crude palm oil priced at 3,450 ringgits per tonne and above.
Meanwhile, the threshold for the windfall profit levy will be increased to 3,150 ringgits per tonne for Peninsular Malaysia, and 3,650 ringgits per tonne for Sabah and Sarawak, the country's largest palm oil producing states, from Jan. 1, the notice read. Malaysia, the world's second-largest palm oil exporter and producer, currently imposes a windfall levy of 3% on crude palm oil prices above 3,000 ringgits per tonne in Peninsular Malaysia and above 3,500 ringgits per tonne in Sabah and Sarawak. The government has proposed to raise the threshold for the windfall profit levy to support the sustainability of the palm oil industry, according to the document. End
Reported by Taniva Singha Roy
Edited by Deepshikha Bhardwaj
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