14/05/2008 (The Star Online), Kuching - The Sarawak government collected more than RM165mil in sales tax on crude palm oil (CPO) last year, more than double the RM69mil collected in 2006.

Sarawak is the first state to impose such sales tax several years ago to boost its revenue. The state also imposes 10% sales tax on lottery.

Sarawak Land Development Minister Datuk Dr James Masing said 23 local authorities collected some RM1.63mil in levy on oil palm plantations last year. The levy is RM5 per mature hectare of the plantation.

''With CPO and its derivates fetching good prices, Sarawak recorded export earnings of RM3.43bil last year against RM1.3bil in 2003 and RM2.3bil in 2006,'' he added in the state assembly here on Wednesday.

Dr Masing said Sarawak produced 1.64 million tonnes of CPO last year, out of the 15.8 million tonnes produced nationwide.

He said Sarawak's average yield of CPO was 3.3 tonnes per ha (national average was 3.83 tonnes per ha) and that Sarawak's average yield of fresh fruit bunches (FFBs) was 15.7 tonnes per ha (national average of 19 tonnes per ha).

He said the average price per tonne of FFB delivered to the processing mills was RM503 last year, up from RM298.7 in 2006. There are now 42 palm oil mills in Sarawak.

Dr Masing said Sarawak oil palm plantations expanded by more than 78,000 hectares or 13% last year (the highest among states in the country), bringing the total planted area to over 682,000 ha.

Private companies own more than 526,000 ha of these plantations, followed by government agencies (over 87,000 ha). The remainder is owned by smallholders and owners of native customary rights land on joint-ventures with private companies.

He said most of the oil palm plantations in Sarawak were facing manpower shortage, and the problem was expected to worsen. The labour shortfall increased to 14% last year from 11% in 2006.

In 2007, more than 53,000 workers were required to work in oil palm estates but only 45,000 of them were available.

Dr Masing said to address the problem, the harvesting of FFB had to be mechanised.

He urged plantation companies to help fund research activities on a mechanical harvester of FFBs.