Malaysia raises palm oil export duty to 10%

Malaysia has raised its reference price for crude palm oil for May, automatically triggering an increase in export duty to a maximum of 10%. The decision was announced in a circular on the Malaysian Palm Oil Board website.

The reference price for May is 4,521.89 ringgit per tonne (about 1,143 US dollars), according to new data. In comparison, in April this figure was 3,935.19 ringgit per tonne, which corresponded to a lower export duty of 9.5%.

Malaysia, the world’s second-largest exporter of palm oil, applies a progressive tax scale. The base rate starts at 3% for prices in the range of RM2,250-2,400 per tonne, while a maximum duty of 10% applies above the RM4,050 threshold.

The increase in duty reflects rising global palm oil prices and could have an impact on global vegetable oil markets. Experts say such changes could impact both the cost of products for importers and the income of producers in the region.

Tags: export, Malaysia, palm oil, duties