08/06/2012 (Bernama) - Tax issue in the palm oil industry is one of the subjects in the plan to be presented to the cabinet but whether there will be a change is up to the government, Minister of Plantation Industries and Commodities, Tan Sri Bernard Dompok said.

"I will be presenting the plan to the cabinet soon. It will be a comprehensive plan to make the Malaysian oil industry more competitive," he told a media briefing after officiating at the Malaysia-India Palm Oil Trade Fair & Seminar 2012 here today.

Asked if there was a suggestion to change the tax structure in the plan, he said: "The tax subject is in the plan to be presented to the cabinet, but whether there will be a change is up to the government."

Currently, Indonesia imposes 19.5 per cent export tax for crude palm oil (CPO), while Malaysia's is 30 per cent after a duty-free limit of 3.6 million tonnes, putting it in a disadvantage position.

Besides this, Indonesian refiners are also getting cheaper crude palm oil (CPO) and feedstock.

"The Indonesian refiners are getting cheaper CPO and feedstock, which is challenging to Malaysian as well as Indian refiners," said Dompok.

Any policy decision by the Malaysian government would have an impact on the refiners, hence, the plan would have a "win-win" solution to the producers as well as refiners, he said.