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RAUB: The government is expected to get a palm oil windfall tax of more than RM500 million in 2021 if the price of crude palm oil (CPO) remains stable at RM3,000 per tonne until next year.
Malaysian Palm Oil Board (MPOB) Chairman Datuk Ahmad Jazlan Yaakub said this is an important contribution from the palm oil industry to the plantation sector to gross domestic product (GDP) as the country fight against the COVID-19 pandemic.
“Palm oil prices may rise further as foreign demand continues to increase. This is also because our stocks are below 2.0 million tonnes, which is approximately 1.6 million tonnes.”
“The palm oil windfall tax imposed on palm oil sales income at the current price level will allow the country to collect a tax estimated at RM 348 million.
“If the price remains stable at RM3,300 per ton and above the level until 2021, the government can earn RM500 million or more,” he said at a press conference after the Small Producers Certification Scheme Campaign of Malaysia Sustainable Palm Oil (MSPO) here on Saturday
Ahmad Jazlan said that the windfall tax of three percent is only imposed when the price of palm oil reaches 2,500 ringgit per ton and more for the peninsula, and 1.5% for Sabah and Sarawak when the price reaches 3,000 ringgit per ton and above.
Meanwhile, he asked more independent small part-time producers to come forward to register for MSPO certification to make it easier for them to market palm oil abroad.
“Small producers in the country are estimated at 481,375, with independent small producers representing 248,182, while the areas planted with oil palm total 959,444 hectares.
“So far, more than 30 percent of small farmers have been certified and many of those who have not yet obtained certification are independent small farmers.
“The MSPO certificate is very important and becomes a benchmark to meet international demand, as it gives importing countries confidence that palm oil is safe to use,” he said. – Bernama
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