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Malaysia may scrap palm oil windfall tax

Malaysia may scrap a windfall tax on palm oil if the price rises further, the country’s Commodities Minister Peter Chin was quoted as saying Jan. 19 by state news agency Bernama.

The Malaysian government in June imposed a windfall tax on crude palm oil sales of above 2,000 ringgit (US$559.3) per tonne, following a surge in palm oil prices that in March rose to above 4,000 ringgit (US$1,119) a tonne.

Malaysian palm oil futures currently trade in the 1,800-ringgit range.

“It would be a fairer request to the government to consider abolishing the windfall tax even if the crude palm oil price goes beyond 2,000 ringgit a tonne in future,” said Chin. “The government will consider the (palm oil) planters’ appeal.”

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