InfoSAWIT, KUALA LUMPUR – Ministry of Commodity, Malaysia proposed to cut half of palm oil export tax to fulfill the lack of vegetable oil supply in the globe and also increase palm oil markets from Malaysia.
Minister of Industry and Plantation Commodity Malaysia, Datuk Zuraida Kamaruddin said, his side proposed to cut of the tax to the Ministry of Finance Malaysia which established one committee to get the details.
“Malaysia temporarily plans to cut off the tax to be 4% to 6% from the previous 8%,” Zuraida said, as quoted from Reuters.
The decision, as it is said, would be effectively running in the early of June. This is the way for Malaysia to escalate its vegetable oil markets after Russia invades Ukraine which sunflower oil delivery has stopped (to the world), and also CPO and its derivative export ban by Indonesia, which made vegetable oil supply lack in the globe.
Zuraida continued, the cut of export tax has been proposed to Ministry of Finance for it has something to do with the country, FGV Holdings Bhd – the biggest one in Malaysia – and oleo-chemical companies in other countries.
Malaysia would postpone to implement B30 mandatory which obliges that some of diesel should be mixed 30% with crude palm oil. “This is about to prioritize the supply to food industry in this country and the globe,” Zuraida said.
CPO which is mostly used in everything, such as, cake and detergent, delivered almost 60% of vegetable oil markets in the world. By there is no CPO supply from the main producer, Indonesia, vegetable oil markets have been interrupted in the world.
Zuraida also said, the importer countries urged Malaysia to minimize the export tax. “They think that it is too expensive because of the expensive costs in the whole vegetable oil supply chain,” Zuraida said. (T2)