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Malaysia, the world's second-largest exporter of palm oil, has lowered its reference price for crude palm oil for the month of December. According to a circular published on the Malaysian Palm Oil Board website on Wednesday, this adjustment maintains the country's export duty at the maximum rate of 10%.
For the upcoming month, authorities calculated a reference price of RM4,259.70 per tonne. This represents a decrease from the November reference price, which was set at RM4,323.78 per tonne and was also subject to the 10% duty.
The Malaysian export tax structure for crude palm oil is progressive, starting at a minimum of 3% for prices within the RM2,250 to RM2,400 per-tonne range. The maximum tax rate of 10% is triggered whenever reference prices exceed the RM4,050 per tonne threshold, ensuring that the levy remains at its peak despite the slight downward revision in the monthly reference price.
Source: Reuters