IOI urges Govt to review CPO windfall profit tax

Double drought continues to impact supply, says Datuk Lee Yeow Chor

KUALA LUMPUR: IOI Corporation Bhd hopes the Government will increase the price threshold for windfall profit tax on crude palm oil (CPO) to RM3,000 per tonne.

Its CEO Datuk Lee Yeow Chor said the last revision of the price threshold of RM2,500 per tonne was made in 2009.

"As of now we are being taxed, production costs have also gone up and we (the plantation companies) hope the Government can review and raise it to RM3,000 per tonne," he said.

Lee said at the the Palm Oil Trade Seminar 2016 in Kuala Lumpur on Wednesday that he expects the lingering effects of the “double drought” of El Nino to continue affecting the supply of palm oil.

For peninsula-based oil palm plantation players, a 15% windfall profit tax is imposed when the CPO price threshold reaches RM2,500 per tonne or more, while those in Sabah and Sarawak are subject to 7.5% when the CPO price hits RM3,000 per tonne or higher.