Government seeks industry views on CPO export duty suspension
Malaysia’s palm oil stocks reached a record 3.51 million tonnes in September, with any decision on tax relief resting with the Ministry of Finance.
The government is seeking feedback from palm oil industry players on temporarily suspending export duties on crude palm oil (CPO), Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad told the Dewan Rakyat on Oct 29. The proposal is aimed at encouraging exports and reducing stockpiles.
Noraini said her ministry consulted industry representatives on Oct 20, with Ministry of Finance (MOF) officials also attending. She said authority over tax exemptions and deferments lies with the MOF, which would make the final decision under existing government policy.
She was answering Teresa Kok (Pakatan Harapan-Seputeh), who proposed a suspension lasting three to five months to support exports, lower inventories and strengthen the industry’s competitiveness.
Palm oil inventories stood at a record 3.51 million tonnes in September. Production also set a record before the usual October peak season.
Noraini said the two ministries would continue providing input and economic analysis for the government’s policy deliberations. She added that considerations would cover the interests of the whole industry, including smallholders.
