KUALA LUMPUR – Palm oil exports from Malaysia, which waived a levy on shipment for the final four months of 2014, will probably remain duty-free in January as average prices stay below a threshold for a tax to be imposed.
The duty, which is based on a price-reference rate compiled by the palm board, will most likely continue at zero, according to CIMB Investment Bank Bhd, BNP Paribas SA and Philip Future Sdn Bhd.
Futures on the Bursa Malaysia Derivatives averaged RM2,204 (US$631) a metric ton from November 10 to december 9, below the RM2,250 level that triggers the 4.5 per cent tax on sales from the world’s largest exporter after Indonesia.
As published by New Straits Times, on Wednesday (10/12/2014), the reference rate that’s used to determine whether the export tax is applied is based on average contracted free-on-board prices from the Malaysian Palm Oil Board. The rate for January is set to be released today, 15th December 2014. (T4)
