KUALA LUMPUR, Oct 4 (Reuters) - Malaysia could cut its crude
palm oil export taxes to between 8-10 percent from the current
23 percent, a commodities ministry official said on Thursday, a
move that could lend support to prices and stiffen competition
for No.1 producer Indonesia.
The ministry will suggest the export policy revision during
a cabinet meeting on Friday, the official said. The current
export tax has not been changed since the 1970s.
"I think this will put us in a very much competitive
position as the difference will be the same as Indonesia which
has a 13.5 percent export tax," Bernard Dompok, the plantation
industries and commodities minister, told reporters when asked
about the proposed tax cut.
Analysts said the move could help support crude palm oil
(CPO) prices.
"We believe the reduction in CPO export tax (if approved by
the Cabinet) would help boost exports of CPO, hence reducing
stockpiles and cushioning CPO price from falling further," said
Malaysia's Hong Leong Investment Bank in a research note.
Palm oil suffered its biggest loss in nearly three years on
Tuesday on the back of lacklustre shipments and growing
stockpiles. It dropped 8.7 percent to 2,255 ringgit ($737) per
tonne - its steepest daily drop since the 2008 financial crisis.
(Reporting By Anuradha Raghu; editing by Miral Fahmy)
(Reporting By Anuradha Raghu; editing by Miral Fahmy)
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