30/05/2008 (Bernama), Mumbai - The government's plan to impose windfall tax on industries making huge profits has not been well received by palm oil producers, says Malaysia Palm Oil Association (MPOA) chairman Datuk Azhar Abdul Hamid.

He said the move would burden companies in the sector which are already subjected to two different taxes.

"The industry is already heavily taxed, we are paying the cess and supporting the COSS (cooking oil stabilisation scheme). The windfall tax will burden the industry, it is not appropriate at this time," he said when asked to comment on the recent proposal by the Ministry of Domestic Trade and Consumer Affairs.

He said industry players had weathered tough times when palm oil prices were low in the commodities market and did not seek government assistance and it was unfair to tax them now when prices are high.

"Many of our council members are concerned about this (tax). Are we not allowed to enjoy abnormal profits?" he asked.

Azhar who is also the managing director of Sime Darby Plantations said the government needs to consult MPOA before implementing the windfall tax as the industry was also saddled with high input costs.

"Price of diesel, labour and fertilizers have all gone up and once these prices increase they never come down. So be fair with us," said Azhar.

On May 22, Minister Datuk Shahrir Abdul Samad had said the government may reintroduce the windfall tax to increase its revenue.