Plantation Industries and Commodities Minister Zuraida Kamaruddin stated in an interview her ministry has already proposed the lower to the finance ministry, which has arrange a committee to look into the small print.
Malaysia, the world’s second-largest palm oil producer, might lower the tax to 4%-6% from the present 8%, she stated.
The lower would seemingly be momentary and a call could possibly be made as early as June, Zuraida stated.
“Throughout these occasions of disaster, in all probability we will loosen up slightly bit in order that extra palm oil may be exported,” she stated.
Malaysia is trying to enhance its share of the edible oil market after Russia’s invasion of Ukraine disrupted sunflower oil shipments and Indonesia’s transfer to ban palm oil exports additional tightened international provides.
Palm oil – utilized in all the things from truffles to detergent – accounts for almost 60% of world vegetable oil shipments and the absence of high producer Indonesia has rattled the market.
Zuraida instructed Reuters importing international locations have requested Malaysia to scale back its export taxes, and a few – like India, Iran and Bangladesh – are proposing barter commerce.
Malaysia may also gradual the implementation of its B30 biodiesel mandate, which requires a portion of the nation’s biodiesel to be combined with 30% of palm oil, to prioritise provide to meals industries, she stated. (