6/8/07 MIRI, (Bernama) -- Plantation Industry and Commodities Minister Datuk Peter Chin Fah Kui today dismissed an allegation by DAP secretary-general Lim Guan Eng that the government was having an extra RM1.4 billion collected from oil palm planters as cess under the Cooking Oil Stabilisation Scheme (COSS).

Chin said his ministry is in fact projecting only about RM855 million in palm oil cess collection for the period from June this year to May next year, based on a price movement of between RM2,150 and RM2,650 per tonne for crude palm oil.

Speaking at a press conference after launching the Sarawak Palm Oil Week here, he said the collection could become even less if the production of palm oil fresh fruit bunches (FFB) decreases during the period.

He said the cess was for financing the COSS which was re-introduced on June 1 this year and which needed about RM788 million meant to stabilise the ceiling price of cooking oil for the 5kg and below packages, as well as to compensate losses suffered by cooking oil packagers.

At a press conference in Petaling Jaya last week, Lim had called for the abolishment of the palm oil cess, claiming that the government could collect as much as RM1.79 billion through it within a year and the amount was way above the RM390 million needed to finance the COSS.

Chin also explained that the cess is applicable only when the CPO price surpasses the RM1,500 per tonne level and that it is imposed only on plantation companies owning planting acreage of 40.46 hectares or more. The cess is collected at a rate of RM2 per tonne of FFB for every RM100 market price increment of the CPO.

Contrary to Lim's claims that Sabah planters were suffering due to the palm oil cess, Chin said his ministry's record showed that the planters in the state were in fact enjoying better nett income due to the rise in the prices of CPO and FFB when compared to the gain made by plantation operators in Peninsular Malaysia.

-- BERNAMA