Crude Palm Oil Export Tax Rises To 6.5 Percent In October

KUALA LUMPUR, Sept 15 (Bernama) -- The crude palm oil export tax will increase to 6.5 per cent in October from the current five per cent. The Royal Malaysian Customs Department in a circular said the new tax is calculated based on a reference price of US$696.33 (RM2,879.47) per tonne. The circular, made available on the Malaysian Palm Oil Board website, states, if the price is below US$544.10 (RM2,250) per tonne, the tax is nil. However, a 4.5 per cent tax would be incurred, should it move above RM2,250 per tonne. If the price ranges between US$689.44 (RM2,851) and US$725.35 (RM3,000) per tonne, then a 6.5 per cent tax would be levied on exporters. The tax can go up to a maximum of 8.5 per cent. Malaysia is the world's second-largest palm oil producer after Indonesia. In August 2016, Malaysia's palm oil exports rose by 30.89 per cent to 1.81 million tonnes against the 1.38 million tonnes recorded in the previous month. --BERNAMA