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BANGI (Nov 30): The government is expected to get a palm oil windfall tax of around RM500 million in 2021 if the price of crude palm oil (CPO) registered is between RM3,000 and RM3. 500 per ton compared to RM348 expectations. million a year for this year.
The Chairman of the Malaysian Palm Oil Board (MPOB), Datuk Ahmad Jazlan Yaakub, said that revenue collection is not impossible if the price of crude palm oil remains above the level 3,000 RM per tonne.
“The expected revenue of RM348 million for this year is an estimate based on the CPO price increase since June.
“We hope that with production and demand, as well as good weather conditions, it is not impossible that (the windfall tax) could reach RM 500 million next year as the country faces economic challenges,” he said today. at a press conference here. .
In 2019, the extraordinary revenue from profit collection amounted to RM256,000.
Ahmad Jazlan said that India is projected to continue importing crude palm oil from Malaysia next year with double-digit growth.
This is due to the reduction of India’s customs duties on crude palm oil to 27.5% from 37.5% on November 27, 2020.
For the period January to October 2020, palm oil exports to India amounted to 1.97 million tonnes valued at RM5.15 billion.
Since June 2020, demand from India started to increase due to activities to increase inventories in the country and demand is beginning to recover following the relaxation of lockdown measures and gradual economic recovery.
On MPOB’s 2020 Cess Order, scheduled to go into effect on January 1, 2021, he said the matter is still in the study and discussion stage.
“We decided to impose the Cess Order at the appropriate time, for example when palm oil is at its highest level in the last eight years.
“The tax collected (one-time RM5) will be returned for the sustainability of the palm oil industry and for the product to remain competitive, not for MPOB savings,” he said.
Ahmad Jazlan said that the revenue collected from the cess is actually not enough for MPOB operations as a whole, as it must be distributed to the Malaysian Palm Oil Council (MPOC), which is a separate entity that conducts related activities and campaigns. with the palm.
The MPOB Cess Order 2020 establishes an additional payment of RM5 cess per ton of CPO and crude palm kernel oil (CPKO) produced, compared to the current total amount of RM14 cess per ton of CPO produced.
Read also:
Postpone Cess Order 2020 from MPOB, MEOA urges
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