Malaysia Maintains CPO Export Tax 8% in April 2022

Malaysia Maintains CPO Export Tax 8% in April 2022

InfoSAWIT, KUALA LUMPUR – The Government of Malaysia came to a conclusion to maintain export tax in April 2022 for crude palm oil (CPO) 8%, according to the circulars exposed by Malaysian Palm Oil Board (MPOB), Monday (21/3/2022).

It is written that Malaysia as the second biggest CPO exporter in the world decided that reference price to export tax would be RM 5.925,33 per ton in April.

In the regulation, as quoted from Reuters, export tax structure starts from 3% for CPO if it is sold at RM 2.250 to RM 2.400 per ton. The highest export tax is 8% if CPO is more than RM 3.450 per ton.

This is different from export tax structure in Indonesia. CPO tax has two models; the first tax is US$ 200/ton in March and adjusts to tax mechanism nationally.

The second is tax from Palm Oil Plantation Fund Management Agency (PFMA). The amount would be distributing to subsidize palm oil biodiesel, smallholders replanting program, research and development, palm oil promotion which reaches US$ 175/ton in March. If the two are combined, export tax would cut off about 30% of CPO price from Indonesia.

CPO export tax has been revised to stabilize palm cooking oil price. It becomes more progressive.

According to Regulation of Minister of Finance (RMF) Number 23 / 2022 which was published on 18 March 2022 about the third substitution of RMF Number 57 /PMK.05/2020 about Public Service Obligation on PFMA in Ministry of Finance, the changes are:

If the products within HS number 15, such as crude palm oil, crude palm kernel oil, crude palm olein, crude palm stearin, crude palm kernel olein, crude palm kernel stearin, they get progressive tax within the highest numbers compared to other palm oil products.

Still refers to the regulation, if they are about US$ 1.000/ton – US$ 1.050/ton, the tax is US$ 175/ton. If they are about US$ 1.050 – US$ 1.100/ton, the tax is US$ 195/ton; between US$ 1.100 – US$ 1.150/ton, the tax is US$ 215/ton; between US$ 1.150 – US$ 1.200/ton, it will be US$ 235/ton; between US$ 1.200 – US$ 1.250/ton it will be US$ 255/ton, between US$ 1.250 – US$ 1.300/ton it will be US$ 275/ton; between US$ 1.300 – US$ 1.350/ton, it will be US$ 295/ton; between US$ 1.350 – 1.400/ton, it will be US$ 315/ton; between US$ 1.400 –US$ 1.450/ton, it will be US$ 335/ton, between US$ 1.450 – US$ 1.500/ton it will be US$ 355/ton, and if they are more than US$ 1500/ton, it will be US$ 375/ton. (T2)