Malaysia reduces crude palm oil export duty in line with Indonesia

In Malaysia, following weeks of speculation, Plantation Industries and Commodities Minister Tan Sri Bernard Dompok announced a major reduction in the country’s export duty on crude palm oil (CPO) as of January 1, 2013. It is expected that Malaysia’s export duty on CPO will be allowed to fluctuate monthly according to global prices, from 4.5% to 8.5%, compared to the current 23% rate. Refined palm oil exports will remain tax-free, and the monthly sliding scale of CPO duty will directly correlate to the system adopted by Indonesia.