The Ministry of Plantation and Commodities (KPK) will collect data related to the costs involved from all players in the palm oil industry before any decision regarding the windfall profit levy (WPL) on palm oil in this country is sent to the Ministry of Finance ( 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 whether the cost of producing one tonne of palm oil has reached RM3,000, so if the market price of CPO (production of crude palm oil) has not even reached RM3,500, we will not call it a windfall tax ?

‘Currently the cost has increased. Before the budget (proposals are submitted to MoF), we want to do all these things, then we propose. The decision is not mine because we have to refer to MoF, so MoF has to consider when we submit later,’ he told reporters after officiating at the 36th Bukit Gantang Umno Division Representative Meeting of 2024 at a ho
tel here today.

On July 4, Johari was reported to have said that the price of palm oil will become uncompetitive compared to other producer countries if the WPL on palm oil in this country is not revised.

The KPK had earlier examined the issue of windfall levy raised by industry players as well as holding consultations with relevant parties.

A WPL rate of 3.0 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.

Source: BERNAMA News Agency