13/10/2016 (Bernama) - The Malaysian Palm Oil Council (MPOC) will appeal to the government to review the windfall profit levy which is extremely burdensome to oil palm planters.

Chairman Datuk Lee Yeow Chor said the last revision of the ceiling price was at RM2,500 per tonne in 2009.

“We hope the government will increase the ceiling price threshold for the windfall profit tax on crude palm oil (CPO) to RM3,000 per tonne as the production cost is high,” he told reporters at the 6th Malaysia Palm Oil Trade Fair and Seminar (POTS) 2016 yesterday.

“As of now, we are being taxed, and production costs have also gone up.

“We hope the government can review and raise it to RM3,000 per tonne,” he added.

Lee said the windfall profit levy is no longer relevant now when compared to its introduction in 1999.

Oil palm planters are subject to a 15 per cent windfall profit tax when the CPO price surpasses RM2,500 per tonne.

Those in Sabah and Sarawak face a 7.5 per cent windfall profit tax if the CPO price rises above RM3,000 per tonne.