AreaMalaysia

Commodity GroupOilseeds, oils and meals

CommodityPalm oil

Date01/01/2021

Policy CategoryTrade

Policy InstrumentExport measures (variable export tax)

DescriptionIn January 2021, following sharp rises in palm oil market prices, reactivated the country’s variable tax on palm oil exports – ending a seven-month duty free period. The ad valorem tax rate was set at 8 percent, i.e. the maximum rate envisaged under the taxation scheme, and is set to remain at that level until end-June 2021.

NotesMALAYSIA – variable palm oil export tax: In January 2021, ending a 7-month duty free period (see MPPU July’20), an 8 percent tax will be applied to the country’s exports of crude palm oil. The tax scheme’s maximum rate was established after the palm oil reference price rose above the MYR 3 450 (USD 855) threshold. The payable duty will amount to MYR 278 (USD 69) per tonne.