Export duty suspension for CPO extended to end-April
07.04.2018 (The Star Online) - PETALING JAYA: The export duty suspension for Malaysian crude palm oil (CPO) has been extended to end-April 2018, according to the Plantation Industries & Commodities Ministry.
In a press release yesterday, the ministry said that the export duty suspension which was supposed to end on April 7, will now last until April 30. However, the export duty exemption could be lifted earlier if the domestic CPO stock falls to below 1.6 million tonnes.
The Malaysian Palm Oil Board will be releasing the oil palm industry’s latest statistics for March on April 10, among which will include the country’s CPO stockpile size.
The country, which is the world’s second-largest palm oil producer, suspended export taxes on crude palm oil for a three-month period starting on Jan 8 this year as it expected stockpiles to grow in 2018.
Minister Datuk Seri Mah Siew Keong said earlier in a statement that the move was intended to allow CPO prices to increase and to reduce high stockpiles.
“The scheme is one of the short-term pre-emptive measures by the Government to manage the fall in crude palm oil prices. This is to make sure the smallholders’ incomes are not affected and the country’s oil palm industry continues to be competitive.
“The zero-duty CPO export scheme is open to all companies which possess valid license to export CPO abroad,” he said.
The Government had initially planned to resume the CPO export tax this month and fixed the duty at 5%. This has led many palm oil exporters rushing to export zero-duty CPO in the month of March.