13/10/2012 (Bernama) -- The government will implement a reduced export duty structure for crude palm oil (CPO) effective Jan 1, 2013, a move that will allow Malaysia's palm oil industry to compete with other palm oil exporting countries in price terms.

The Plantation Industries and Commodities Ministry said implementation of the reduced export tax will also allow refineries in the country to market their products at competitive prices to the global market.

"In tandem with the reduced CPO export duty, the government will discontinue with the duty-free CPO export facility beginning Jan 1, 2013," the ministry said in a statement.

These are among the number of measures by the government to strengthen competitiveness of the palm oil industry following the decline in palm oil prices since last month and increase in domestic palm oil stocks.

Commenting on the announcement, Minister Tan Sri Bernard Dompok said the export duty for Malaysia's CPO will be based on the current CPO prices.

The new tax regime will have nine levels, ranging from 4.5 per cent to 8.5 per cent according to market prices, he told reporters after the launch of the Malaysia Cocoa and Chocolate Day 2012