Malaysia palm growers seek freeze on export duty, windfall tax


  • Business
  • Friday, 22 Nov 2019

Smallholders have been hardest hit, with growers cutting fertiliser use amid low prices and higher production costs; dry spell this year is set to affect yields in 2020

KUALA LUMPUR: Malaysian Palm Oil Association calls on government to indefinitely suspend the windfall tax imposed on palm growers even when prices surpass RM2,500t/ton, while crude palm oil export duty exemption should continue into next year, the group says.

“The industry as whole is just about to recover from the prolonged low palm oil prices and has suffered in terms of low profits and even losses over a period of time, ” Chief Executive Nageeb Wahab says in statement on Friday.

* Smallholders have been hardest hit, with growers cutting fertiliser use amid low prices and higher production costs; dry spell this year is set to affect yields in 2020.

* If govt insists on imposing windfall tax, group calls for threshold to be raised to RM3,000/ton from RM2,500 currently for Peninsular Malaysia, and to RM3,500/ton in Sabah and Sarawak vs RM3,000 now.

* All proceeds should be channeled back to palm industry.

* NOTE: Primary Industries Ministry suggested using 50% of windfall tax for various purposes including for B20 biodiesel mandate next year.

* MPOA welcomes govt plan to impose additional RM1/ton “reforestation cess“ from Jan. 2020.

* NOTE: MPOA represents 40% of oil palm plantations in Malaysia.

* NOTE: Malaysian Fuel Cos. to Upgrade Facilities for B30 Biodiesel Plan. - Bloomberg


Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 7
Cxense type: free
User access status: 3

   

Across The Star Online