TAIPING, July 6 — The Plantation and Commodities Ministry will gather data on costs involved from palm oil industry players before decisions on the windfall profit levy (WPL) are sent to the Finance Ministry ( MOF).
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said all proposals related to the matter would be sent to the MOF before the tabling of Budget 2025.
“We made an average to see if the cost of producing one tonne of palm oil has reached RM3,000. If the market price of CPO (crude palm oil) has not even reached RM3,500, would we still call it windfall tax?
“The cost has increased. Before the budget (proposals are submitted to MOF), we want to do all these things, then we will propose. The decision is not mine as we have to refer to MOF, so MOF has to consider the matter when we submit the proposals,” he told reporters after officiating at the 36th Umno Bukit Gantang Representatives Meeting of 2024 at a hotel here today.
On July 4, Johari reportedly said palm oil prices will be uncompetitive compared with other producer countries, if the WPL on palm oil in this country is not revised.
The ministry earlier examined the issue of WPL raised by industry players and held consultations with relevant parties.
A WPL rate of 3 per cent is imposed on palm oil prices above RM3,000 per tonne in Peninsular Malaysia and above RM3,500 per tonne in Sabah and Sarawak.
— Bernama
