PALMOILMAGAZINE, KUALA LUMPUR – The Malaysian government has decided to maintain its crude palm oil (CPO) export tax rate at 10% for May, according to an official circular published on the Malaysian Palm Oil Board (MPOB) website on Tuesday, April 15.
As reported by Palmoilmagazine.com via The Edge Markets on Thursday (April 17, 2025), although the tax rate remains unchanged, the reference price for CPO in May has been lowered to RM4,449.35 per metric ton (approximately US$1,008.47), down from RM4,547.79 per ton in April.
Malaysia, the world’s second-largest CPO exporter after Indonesia, applies a progressive export tax structure. The tax begins at 3% for prices between RM2,250 and RM2,400 per ton and increases incrementally, capping at 10% when prices exceed RM4,050 per ton.
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Since the current reference price remains above that RM4,050 threshold, the maximum export tax rate of 10% continues to apply.
This policy reflects Malaysia’s ongoing strategy to balance export competitiveness and price stability, especially amid volatile global markets and fluctuating vegetable oil prices. The revised reference price also mirrors recent trends in international CPO pricing. (P2)
