Tuesday, August 20, 2002 (The Star) - Primary industries minister DatukSeri Dr Lim Keng Yaik hopes that the Sabah state government will deferincreasing the sales tax on the sale of crude palm oil as the oil palmsector has just recovered from poor prices of the last two years.At present, Sabah charges a five percent sales tax for every 1,000 tonnesor more of CPO sold while Sarawak charges 2.5 percent for sales of between1,000 and 1,500 tonnes and five percent for sales of more than 1,500tonnes.Speaking to reporters after meeting Sabah chief minister Datuk Chong KahKiat here today, Dr Lim said he hoped that the Sabah state governmentwould reduce the tax to be equivalent to those charged by the Sarawakstate government.He said the higher sales tax would put smallholders at a disadvantagebecause state governments in Peninsular Malaysia did not impose any salestax on CPO.“Plantation companies in Sabah had just recovered after what they sufferedin the last two years and I hope they will be given time to recover beforenew additional charges are to be considered. I hope the Sabah stategovernment will listen to my appeal which I am doing on behalf of the oilpalm industry in Sabah,” he saidWith one million hectares of land suitable for oil palm cultivation inSabah, he said additional charges might make potential investors hesitantto come to the state and in turn this would affect the future developmentof the crop. – Bernama