Malaysia govt to discuss palm oil export tax on Friday
JAKARTA Oct 8 (Reuters) - Malaysia will discuss possible changes to its crude palm oil export tax regime in a meeting on Friday, and the country may consider limiting plantation expansion to support falling prices, a government minister said on Monday.
Late last week, Malaysia, the world's second biggest producer of the edible oil after Indonesia, delayed taking a decision on a proposal to cut crude palm oil export taxes to 8-10 percent from 23 percent as the cabinet needed more time to study the plan.
"The Malaysian cabinet will discuss the changes on palm oil export tax structure next Friday," said Bernard Dompok, Malaysia's plantation industries and commodities minister, following talks with Indonesia's agriculture minister in Jakarta.
Palm oil markets have been waiting for Malaysia to come up with a strategy to counter top producer Indonesia's move last year to cut export taxes of refined palm oil and boost margins for its downstream processing industry.
In order to help prevent further declines in palm oil prices, both countries agreed to work together to manage supplies and work on environmental issues.
"There are two possibilities in our cooperation with Indonesia," Dompok said. "First, reducing palm oil plantation expansion. The other possibility is to increase palm oil use (and) consumption in Malaysia by promoting biodiesel usage." (Reporting by Yayat Supriatna; Writing by Michael Taylor; Editing by Neil Chatterjee)
- Tweet this
- Share this
- Digg this