Malaysian Palm oil shipment tax to remain at zero until the end of February
Industry news / Chat on line / Give me a price / Date: February 20, 2016
Palm oil exports from Malaysia, which waived a levy on shipments for the final four months of 2014, will probably remain duty-free until the end of February, as average prices stay below a threshold for a tax to be imposed.
Malaysia removed the duty for September and October and extended the waiver for more months to try to curb the building up of reserves and support prices of its most valuable farm-commodity export.
While the move helped spur a bull market, futures still lost 19% as demand for the tropical oil used in food and biofuels fell amid a global glut and a slump in crude prices. Data yesterday showed Malaysian reserves climbed to the highest level since February 2013.
Shipments from Indonesia are also duty-free as the government kept its tax at zero for December. The country sets its tariff according to a formula based on average prices in Jakarta, Rotterdam and Kuala Lumpur. Crude shipments attract no tax if the average rate is US$750 a tonne or less over a four-week period.
Malaysia's palm oil export price 2013-2014
Malaysia removed the duty for September and October and extended the waiver for more months to try to curb the building up of reserves and support prices of its most valuable farm-commodity export.
While the move helped spur a bull market, futures still lost 19% as demand for the tropical oil used in food and biofuels fell amid a global glut and a slump in crude prices. Data yesterday showed Malaysian reserves climbed to the highest level since February 2013.
Shipments from Indonesia are also duty-free as the government kept its tax at zero for December. The country sets its tariff according to a formula based on average prices in Jakarta, Rotterdam and Kuala Lumpur. Crude shipments attract no tax if the average rate is US$750 a tonne or less over a four-week period.
Malaysia's palm oil export price 2013-2014
