# Sales tax may pressure planters’ competitiveness | The Star

> Malaysian analysts expect an expanded 5% sales and service tax to take effect in July and raise raw material costs for palm oil players. CIMB Research said the tax applies to palm kernel oil products but fresh fruit bunches are exempt. Analysts warn the tax could weaken local competitiveness against Indonesia.

- Date: 2025-06-16 · published 2025-06-16T12:00:00.000Z
- Category: policy · region Malaysia · magnitude low
- Page: https://feedsoft.ai/events/24327-sales-tax-may-pressure-planters-competitiveness-the-star
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Higher costs for Malaysian processors could reduce their export competitiveness and affect supply or pricing. Buyers may bear part of the cost, so the price impact is limited.

## Read by commodity

- PALMOIL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2024-09-19 | [Indonesia issues new palm oil levies rule to boost competitiveness \| Reuters](https://feedsoft.ai/events/15615-indonesia-issues-new-palm-oil-levies-rule-to-boost-competitiveness-reuters.md) | +2.4% | +11.3% |
| PALMOIL | 2024-05-04 | [GAPKI: Govt Policies Make CPO Less Competitive - Gabungan Pengusaha Kelapa Sawit Indonesia (GAPKI)](https://feedsoft.ai/events/30353-gapki-govt-policies-make-cpo-less-competitive-gabungan-pengusaha-kelapa-sawit.md) | -0.6% | +6.9% |
| PALMOIL | 2026-01-22 | [Palm Oil News - Indonesia Delays B50 Plan, Malaysia Seen More Competitive in CPO Exports](https://feedsoft.ai/events/15502-palm-oil-news-indonesia-delays-b50-plan-malaysia-seen-more-competitive-in-cpo.md) | +1.5% | +4.4% |
| PALMOIL | 2018-05-06 | [Likely drag on CPO prices \| The Star](https://feedsoft.ai/events/64886-likely-drag-on-cpo-prices-the-star.md) | +1.2% | +1.8% |
| PALMOIL | 2017-06-16 | [Malaysia to raise CPO export tax next month \| The Star](https://feedsoft.ai/events/70365-malaysia-to-raise-cpo-export-tax-next-month-the-star.md) | -1.1% | +2.2% |

## Sources

- thestar.com.my: https://www.thestar.com.my/business/business-news/2025/06/17/sales-tax-may-pressure-planters-competitiveness

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.