Sarawak timber companies take a hit from higher taxes

The circular stated that Chief Minister Datuk Amar Abang Johari Tun Openg, also Resource Planning and Environment Minister, had approved the increase in the hill timber premium to RM50 per cu m for all species of logs harvested from hill forests and logs of hill species from agri-conversion areas. The current premium for hill timber is 80 sen per cubic metre, while it is RM3 per cubic metre for logs from agri-conversion areas.

KUCHING: Sarawak timber companies would likely see their earnings take a hit after state authorities raised the price of a timber tax by more than 6,000% from July 1.

Sarawak timber firms were notified of the hike via a recent circular entitled “New Rate for Hill Timber Premium (Sarawak Foundation Fund)” issued by Sarawak forestry director Sapuan Ahmad that would see the hill timber premium jump to RM50 per cubic metre from 80 sen per cubic metre, a hefty 6,250% increase from July 1, 2017.