AMRESEARCH Sdn Bhd said the scrapping of crude palm oil (CPO) export tax will help boost shipments of the commodity.
“We view the scrapping of CPO export tax positively. This would allow some of the upstream producers to export their CPO if the storage tanks at the refineries are full,” the firm said in a report yesterday.
AmResearch said these upstream producers would probably use brokers as intermediaries for their exports.
The government announced the move on Wednesday, saying that exports would be boosted by 600,000 tonnes, which should ease palm oil inventory to 1.6 million tonnes by year-end.
Previously, the government had set a CPO export tax of 4.5 per cent for September. Based on the export tax schedule, there is no tax if CPO prices are below RM2,250 a tonne. Read more..
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