7-Malaysia's Export Duty Remains At 8% On Crude Palm Oil

1. Malaysia's Export Duty Remains At 8% On Crude Palm Oil Malaysia's Export Duty Remains At 8% On Crude Palm Oil About 33% of the world's oils made from oil crops in 2014 were palm oil. Malaysia is the world's second- largest palm oil exporter. Retention of Palm Oil Tax Rate in October Retention of Palm Oil Tax Rate in October The Malaysian Government has decided to keep the export tax for crude palm oil at 8% for October, according to a most recent update on the website of the Malaysian Palm Oil Board. Being the second- largest exporter of palm oil, Malaysia's decision is significant because any adjustments to its export tax regime may have a significant impact on the palm oil market worldwide. Reduced Reference Price Reduced Reference Price Additionally, the government reduced the reference price for October from 3,755.13 ringgit per metric ton in September to 3,710.50 ringgit per metric ton. The government determines the reference price, which is used by exporters and traders as a benchmark. This price decline suggests that the cost of crude palm oil may also be falling, which could increase demand from importing nations. Malaysia’s Crude Palm Oil Export Tax Structure Malaysia’s Crude Palm Oil Export Tax Structure The Malaysian crude palm oil export tax structure starts at 3% for prices between 2,250 and 2,400 ringgit per ton. For prices greater than 3,450 ringgit per ton, the maximum tax rate is set at 8%. By ensuring a sufficient supply for local consumption and maintaining stable prices, this tiered structure is intended to safeguard domestic industries. Effects on the World Palm Oil Market Effects on the World Palm Oil Market Being the second-largest exporter of palm oil after Indonesia, Malaysia's reference price and export tax structure can have a big impact on the palm oil market worldwide. Retaining the 8% export tax rate for

2. October and reducing the reference price may increase the supply of crude palm oil globally, which may have an impact on prices and demand. Previous Changes Witnessed Malaysia's export tax system and the reference price for crude palm oil have undergone numerous changes in recent months. For instance, the reference price was raised to 4,144.31 ringgit per ton in June while the export tax was kept at 8%. However, the reference price was reduced to 3,604.73 ringgit per ton in July while the export tax remained at 8%. The global palm oil market is dynamic, as evidenced by the frequent fluctuations, and the government's efforts to adapt to these changes. Impact On The Future Impact On The Future Going forward, the Malaysian government's decisions on the export tax and the benchmark price for crude palm oil will continue to have a big impact on the palm oil market worldwide. Therefore, it is essential that traders, exporters, and policymakers closely monitor these changes and take appropriate action. If you are a palm oil importer wishing to buy palm oil in bulk or a palm oil exporter willing to export bulk palm oil, then Tradologie.com is the right platform for you. Tradologie.com is a Software as a Service platform that facilitates bulk agro-trade across the globe. Through tradologie.com’s interface, buyers can avail the best qualities of agro-commodities at negotiable rates. The transaction oriented platform has 600,000+ verified buyers and about 70,000+ registered sellers of agro-commodities from over 150 countries. To register as a buyer, click here. To register as a seller, click here. To stay updated with the latest happenings in the agro-trade industry, follow Tradologie.com across all social media channels.