Malaysia to Increase Crude Palm Oil Export Tax to 9.5% Starting November

Malaysia has announced an increase in its crude palm oil export tax to 9.5% for November, marking the first hike in over three years. According to a customs notice posted on the Malaysian Palm Oil Board (MPOB) website, the new rate will replace the longstanding 8% export tax that has been in place since January 2021.

Background on Malaysia’s Palm Oil Export Tax

From July to December 2020, Malaysia suspended its palm oil export tax to support the sector amid global disruptions. In early 2021, the country reinstated the tax at 8%, where it remained until this latest increase. The tax structure allows for a maximum tax rate of 10%, applicable when crude palm oil prices exceed 850.5 EUR per ton.

The revised export tax will take effect on November 1, as confirmed by the MPOB.

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