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Uggah: Studies Show A Need To Reinstate CPO Tax Regime
Uggah: Studies Show A Need To Reinstate CPO Tax Regime
16/03/2015 (Bernama) - The 4.5 per cent export duty on Malaysian crude palm oil (CPO) for April 2015, has taken into account various studies that suggest the tax regime needs to be restored, says Plantation Industries and Commodities Minister, Datuk Amar Douglas Uggah Embas.
He said the rate to be enforced was calculated based on the average CPO price of RM2,288 per tonne during the first two weeks of March, with the threshold CPO tax of RM2,250 per tonne.
"At this particular price range, the export tax rate will be at 4.5 per cent for the month of April.
"After various studies (done), we found a need to reinstate the export tax rate," he told reporters after hosting a visit by Iranian parliamentarians to the Malaysian Palm Oil Board's (MPOB) headquarters here today.
Malaysia, the world's second-largest palm oil producer, exempted the export tax on CPO from Sept 1, 2014 to Feb 28, 2015, to boost exports and reduce inventories.
According to a Royal Customs Department's circular posted on the MPOB website, the price range of CPO for April is expected to be between RM2,250 and RM2,400 per tonne.
MPOB said the department would raise the tax if the reference price of exports was above RM2,250 per tonne.
On another note, Uggah said a new standard operating procedure on curbing the issue of stolen fresh fruit bunches (FFB) in Sarawak would be implemented on April 2.
"This is to minimise cases of FFB theft in future. It is very pertinent as it affects the industry with investors feeling it is unprofitable in Sarawak, with losses to the government," he added.
About 250 cases of stolen FFB in Sarawak were reported in 2013, caused million of ringgit in losses for the oil palm industry.
Last year, the MPOB issued 278 compounds and at the same time, terminated three business licenses and suspended 24 others, while imposing eight compounds. It also issued six warning letters.
He said the rate to be enforced was calculated based on the average CPO price of RM2,288 per tonne during the first two weeks of March, with the threshold CPO tax of RM2,250 per tonne.
"At this particular price range, the export tax rate will be at 4.5 per cent for the month of April.
"After various studies (done), we found a need to reinstate the export tax rate," he told reporters after hosting a visit by Iranian parliamentarians to the Malaysian Palm Oil Board's (MPOB) headquarters here today.
Malaysia, the world's second-largest palm oil producer, exempted the export tax on CPO from Sept 1, 2014 to Feb 28, 2015, to boost exports and reduce inventories.
According to a Royal Customs Department's circular posted on the MPOB website, the price range of CPO for April is expected to be between RM2,250 and RM2,400 per tonne.
MPOB said the department would raise the tax if the reference price of exports was above RM2,250 per tonne.
On another note, Uggah said a new standard operating procedure on curbing the issue of stolen fresh fruit bunches (FFB) in Sarawak would be implemented on April 2.
"This is to minimise cases of FFB theft in future. It is very pertinent as it affects the industry with investors feeling it is unprofitable in Sarawak, with losses to the government," he added.
About 250 cases of stolen FFB in Sarawak were reported in 2013, caused million of ringgit in losses for the oil palm industry.
Last year, the MPOB issued 278 compounds and at the same time, terminated three business licenses and suspended 24 others, while imposing eight compounds. It also issued six warning letters.