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Malaysia raises cess rates for timber exports

KUALA LUMPUR: Malaysia will raise export cess rates for sawn timber, plywood, veneer and moulding to five ringgit per cubic metre from 1.36 ringgit, effective March 1, the national Bernama news agency said on Tuesday.

Bernama quoted Primary Industries Minister Lim Keng Yaik as saying an export cess of two ringgit per cubic metre would also be imposed on particle/chip board and block board products.

Lim also announced a ban on the export of finger jointed and laminated sawntimber of rubberwood to improve supply in the domestic market.

Lim said the new cess rate had been formulated after extensive discussions with the industry and was aimed at providing additional funds to further promote the sector.

The previous cess had been in place since 1988 and contributed to an annual collection of two million ringgit but the new rates would see cess collections amounting to between six million and seven million ringgit a year, he said.-Reuters