Sarawak timber companies feeling the heat from jump in taxes

KUCHING: Sarawak timber companies are feeling the heat from the sharp increase in the cost of production of logs and timber products following the hefty jump in timber taxes.

According to the Sarawak Timber Association (STA), the increase in hill timber premium and rehabilitation and development cess, which amounted to RM55 per cu m, has raised the costs of logs and timber products by RM110 per cu m, assuming a recovery rate of 50%.