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The Malaysian Palm Oil Council (MPOC) condemns efforts by the governing party of France to impose a discriminatory tax on palm oil produced in the developing world. A new report commissioned by MPOC finds no economic rationale for the new tax, and in fact, finds it to be disproportionate and discriminatory. The MPOC calls on President Hollande to stop Minister Royal’s discriminatory tax against palm oil and stand by Foreign Affairs Minsiter Ayrault’s promise that France will not apply a new tax to palm oil.


As the world’s second biggest producer of palm oil, Malaysia would also be hit hard by this tax hike. The Malaysian Palm Oil Council (MPOC) has produced a report aimed at discrediting the French MPs’ argument that the new surtax would align the taxation of palm oil and olive oil.

According to the report, this alignment would result in an exceptionally high tax rate for palm oil, as its sale price is so much lower than that of other oils used in food products, such as olive oil.

“This act is clearly damaging to the national development objectives of these developing countries. A differential tax weighting goes against European law and the principles of the WTO. […] Jean-Marc Ayrault, the French minister of foreign affairs […] has already promised the Malaysian people that no tax would be applied to palm oil. This promise must be kept,” said Dr Yusof Basiron, the president of the MPOC.

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