Temporary Suspended Tax on Exports of Palm Oil

Updated on Thursday 25th January 2018

The tax on exports of palm oil was suspended for a period of three months, starting with 8th of January 2018, as a measure against the fall of prices available for this commodity. This measure was also taken in order to avoid the impact that can appear on the income of the companies operating in this industry - especially small scale farmers. Foreign businessmen interested in opening a company in Malaysia related to the production or the export of palm oil must know that the country is the second largest producer at a global level. Our team of consultants in company formation in Malaysia can provide in-depth assistance on the taxation scheme available for businesses involved in this activity. 
 

Reasons for tax suspension in Malaysia 


The decision to suspend the tax on the export of crude palm oil was also influenced by the level of stocks available for this product, considering that the estimated production for 2018 will increase. Also, the local authorities believe that the measure will boost the prices for palm oil and, if the stocks of crude palm oil will decrease to 1.6 million tonnes, the tax suspension will be removed prior to the above mentioned period of time. Our agents can provide more details on other taxes imposed for export companies in Malaysia


Palm oil production in Malaysia in 2017 


The stocks of crude palm oil in Malaysia increased at the level of 2017. In November 2017, Malaysia registered an increase of 16% for the production of palm oil, compared to the previous month. This accounted for a total of 2.56 million tonnes, while the estimates for the month of December show that the total stocks will reach 2.69 million tonnes. The increase in stocks was partly determined by a low level of exports, but the local authorities expect an expansion of the exports in the following months, as some of the top buyers - India, China and Europe countries - will complete new orders.  

Foreign businessmen interested in the procedure of company formation in Malaysia in this industry should know that the latest price for crude palm oil was of RM 2,623.31 per tonne. The price was available at the level of January 2018 and the tax for this product was imposed at a rate of 5.5%

Businessmen can contact our team of specialists in company registration in Malaysia for further information regarding this subject. 

Anne

January 25, 2018

This commodity became a very popular product in Europe due to its properties. Nowadays, both companies operating as restaurants or catering units and natural persons use this product on a frequent basis, so I am sure that the current stocks will soon decrease in this country.



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