Government To Implement Reduced Export Duty Structure For CPO Effective Jan 1, 2013
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.
In addition, the ministry is engaged with the relevant parties to implement the B10 Programme (blending of 10 per cent palm oil biodiesel with petroleum diesel) for the unsubsidised sector.
This measure will increase CPO consumption by another 300,000 tonnes a year, it said.
Currently, the B5 Programme (blending of five per cent palm biodiesel and 95 per cent petroleum diesel) has been implemented in the central region, covering Selangor, Melaka, Negeri Sembilan, Kuala Lumpur and Putrajaya Federal Territories.
The B5 programme in the central region utilises 112,000 tonnes of CPO annually.
The ministry is also looking at providing incentives for replanting of old and unproductive oil palm trees.
It is estimated that a planted area of 100,000 hectares needs to be replanted and this is envisaged to reduce CPO supply by 300,000 tonnes.
The ministry will also continue with measures to strengthen competitiveness of the palm oil industry to ensure the growers receive remunerative income.
Focus will also be given towards assisting the growers, in particular the smallholding sector, which accounts for close to 40 per cent of the total planted area of five million hectares of oil palm, the ministry added.