Lang
KUALA LUMPUR (Sept 15): Malaysia has raised its October crude palm oil reference price to a level that keeps the export duty unchanged at 10%, according to a circular published on the Malaysian Palm Oil Board website on Tuesday.
The world's second-largest palm oil exporter set a reference price of RM4,452.66 (US$1,091.34) per metric tonne for October.
In September, the reference price stood at RM4,392.32 per tonne, which also attracted a 10% export duty.
Under Malaysia's export tax structure, the duty starts at 3% for crude palm oil priced within a RM2,250-to-RM2,400-per-tonne band. The maximum rate of 10% kicks in once prices exceed RM4,050 per tonne.
With the October benchmark crossing that threshold by a wide margin, the top-tier duty will continue to apply, keeping Malaysian CPO shipments among the most heavily taxed in the region for another month.
Source: The Edge Malaysia