Malaysia Raises Export Tax on Crude Palm Oil

Malaysia has raised its export tax on crude palm oil for January, the first time in one-and-a-half years, the Malaysian Palm Oil Board’s website said on Friday, citing the national customs department. The world’s second-largest producer and exporter of palm oil had last imposed an export tax of 4.5% in August 2018 before lowering it to zero. It then placed a tax-free exemption on crude palm oil from May to December 2019 in a move to boost palm oil exports and expand into new markets. The country may export more refined products as crude palm oil will now be taxed 4.5%.  Malaysia had calculated a palm oil reference price of RM2,571.16 ($616.59) per ton for January 2020. Traders said Indonesia may follow in Malaysia’s footsteps to impose a similar tax on exports.