KUALA LUMPUR: Malaysia’s commodities ministry has proposed cutting the export tax on palm oil by as much as half to help fill a global edible oil shortage and grow the market share of the world’s second-largest palm oil producer.
Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin said in an interview with Reuters yesterday her ministry has proposed the cut to the finance ministry, which has set up a committee to look into the details.
Malaysia could cut the tax, likely a temporary measure, to 4%-6% from the current 8%, Zuraida said. A decision could be made as early as June, she said.
Malaysia is looking to boost its share of the edible oil market after Russia’s invasion of Ukraine disrupted sunflower oil shipments and Indonesia’s move to ban palm oil exports further tightened global supplies.
“During these times of crisis, probably we can relax a little bit so that more palm oil can be exported,” Zuraida said.