AreaMalaysia

Commodity GroupOilseeds, oils and meals

CommodityPalm oil

Date01/10/2014

Policy CategoryTrade

Policy InstrumentExport tax

DescriptionExtended tax exemption on palm oil till the end of the year.

NotesIn early September, the government suspended its variable tax on crude palm oil (CPO) exports for two months to encourage shipments amid weak demand and swelling stockpiles. Prior to September, CPO exports attracted ad valorem taxes between 4.5% and 5.5%. The decision to temporarily suspend taxation was taken with a view to mitigating the on-going decline in CPO prices. In mid October, as CPO prices failed to recover, the government chose to extend the tax exemption until the end of this year.