M’sia maintains tax
free crude palm oil exports
Posted
on 17 February 2015 - 05:37am
KUALA LUMPUR: Malaysia
has kept tax on exports of crude palm oil at zero for March, a government
circular showed yesterday, extending a duty-free policy held since October.
The move, which is likely to underpin
prices, comes as a surprise as Malaysia's plantation industries and commodities
minister said last week the country was planning to resume taxing exports from
March.
The rate was scrapped from October to
December, and later extended to end-February.
Malaysia, the world's second largest palm
oil producer after Indonesia, calculated a reference price of RM2,232.88 per
tonne for March crude palm oil, effectively incurring an export duty of 0%.
Increased global edible oil supplies and
slowing demand have pressured palm oil prices which dropped 15% last year.
Authorities in Indonesia and Malaysian,
which account for 85% of global palm oil production, are giving financial
incentives in a bid to boost demand and support prices of the tropical product.
Indonesia has approved a threefold increase
in biodiesel subsidies which is likely to take effect next month. – Reuters
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