Malaysia may cut palm oil export tax by half amid global supply crisis

Published 2022년 5월 10일

Tridge summary

Malaysia's commodities ministry is considering reducing the export tax on palm oil by half to help address a global edible oil shortage and increase the country's market share. The proposed tax rate would be reduced from 8% to 4%-6%. A decision on the tax cut could be made in June. The ministry is also planning to slow down the implementation of its B30 biodiesel mandate to prioritize palm oil supply for the food industry. The decision comes as Russia's invasion of Ukraine and Indonesia's ban on palm oil exports have disrupted global supplies, leading to a surge in palm oil prices. However, the US Customs and Border Protection has imposed import bans on two Malaysian palm oil producers, alleging forced labor, an issue the companies are investigating.

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Original content

KUALA LUMPUR (May 10): Malaysia's commodities ministry has proposed cutting the export tax on palm oil by as much as half to help fill a global edible oil shortage and grow the market share of the world's second-largest palm oil producer. Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin said in an interview with Reuters on Tuesday her ministry has proposed the cut to the finance ministry, which has set up a committee to look into the details. Malaysia could cut the tax, likely a temporary measure, to 4%-6% from the current 8%, Zuraida said. A decision could be made as early as June, she said. Malaysia is looking to boost its share of the edible oil market after Russia's invasion of Ukraine disrupted sunflower oil shipments and Indonesia's move to ban palm oil exports further tightened global supplies. "During these times of crisis, probably we can relax a little bit so that more palm oil can be exported," Zuraida said. The proposal also asked the Finance ...

Source: Theedgemarkets