MARKET DEVELOPMENT
CPO Export Tax To Go Up To 4.5 Per Cent In April
CPO Export Tax To Go Up To 4.5 Per Cent In April
16/03/2015 (Bernama) - The crude palm oil (CPO) export tax will be raised to 4.5 per cent from April 2015, says Royal Customs Department.
According to its circular, which was posted on Malaysian Palm Oil Board (MPOB) website, for April, the price range was expected to be between RM2,250 and RM2,400 per tonne.
MPOB said the Customs Department would raise the tax if the reference price of the exports was above RM2,250 per tonne.
Currently, the reference price is RM2,288.41 per tonne.
Phillip Futures Sdn Bhd senior derivatives product specialist, David Ng, said under the CPO export duty structure, the exports were taxed at 4.5 per cent as the CPO gazetted price was higher than the RM2,250 per tonne threshold price.
"This move would definitely impact our palm oil export as importers would shift to Indonesia's. It has zero CPO export duty since last year.
"However, I can't say anything much on this as it is the government's decision to impose the CPO tax export," he said.
The new CPO export duty regime, which was introduced in January 2013, was unchanged since the 1970.
However, Malaysian government decided to suspend the CPO export duty, initially from September to October last year, followed by an extension in November last year up till end-February this year.
The move was to help reduce the rise in palm oil stocks and help planters tide over weak exports amid the easing CPO prices.
Meanwhile, MPOB said Malaysia's palm oil exports fell 18.44 per cent to 971,640 tonnes in February, due to lower demand from major importers such as China, Pakistan, the European Union and the US.
It said palm oil stocks also eased 1.53 per cent to 1.74 million tonnes in February from 1.77 million tonnes in January.
According to its circular, which was posted on Malaysian Palm Oil Board (MPOB) website, for April, the price range was expected to be between RM2,250 and RM2,400 per tonne.
MPOB said the Customs Department would raise the tax if the reference price of the exports was above RM2,250 per tonne.
Currently, the reference price is RM2,288.41 per tonne.
Phillip Futures Sdn Bhd senior derivatives product specialist, David Ng, said under the CPO export duty structure, the exports were taxed at 4.5 per cent as the CPO gazetted price was higher than the RM2,250 per tonne threshold price.
"This move would definitely impact our palm oil export as importers would shift to Indonesia's. It has zero CPO export duty since last year.
"However, I can't say anything much on this as it is the government's decision to impose the CPO tax export," he said.
The new CPO export duty regime, which was introduced in January 2013, was unchanged since the 1970.
However, Malaysian government decided to suspend the CPO export duty, initially from September to October last year, followed by an extension in November last year up till end-February this year.
The move was to help reduce the rise in palm oil stocks and help planters tide over weak exports amid the easing CPO prices.
Meanwhile, MPOB said Malaysia's palm oil exports fell 18.44 per cent to 971,640 tonnes in February, due to lower demand from major importers such as China, Pakistan, the European Union and the US.
It said palm oil stocks also eased 1.53 per cent to 1.74 million tonnes in February from 1.77 million tonnes in January.