KL tax on palm oil shipments seen staying at zero next month

Kuala Lumpur

PALM oil exports from Malaysia, which waived a levy on shipments for the final four months of 2014, will probably remain duty-free in January as average prices stay below a threshold for a tax to be imposed.

The duty, which is based on a price-reference rate compiled by the palm board, will most likely continue to be zero, according to CIMB Investment Bank, BNP Paribas and Phillip Futures. Futures on the Bursa Malaysia Derivatives averaged RM2,204 (S$832) a tonne from Nov 10 to Dec 9, below the RM2,250 level that triggers the 4.5 per cent tax on sales from the world's largest exporter after Indonesia.