28/11/2012 (The Sun) - A group of MPs with oil palm plantations in their constituencies, led by Deputy House Speaker Datuk Ronald Kiandee, will submit a letter to French lawmakers airing their concerns over a proposal to increase palm oil taxes by 300%.

Johor Baru MP Tan Sri Shahrir Abdul Samad said the increase proposed in France's draft budget will jeopardise the economy of palm oil farmers here as about 40% of the 5 million hectares of oil palm land in Malaysia belong to smallholders.

"Over 2.4 million Malaysians are dependent on the oil palm industry," he said at a press conference held at the parliament lobby here today.

He was responding to news reports that French Senator Yves Daudigny had proposed to increase palm oil tax in the Projet de Loi de Financement de la Sécurité Sociale (Draft Bill on Financing Social Security) on alleged grounds that palm oil is unhealthy for consumption, and that the palm oil industry is causing de-forestation.

Although the budget was rejected by the Senate, it is possible for the palm oil tax to be reintroduced at a later stage of the draft budget in France's legislative process.

He said that the France Malaysia-Friendship Group, Marie-Louise Fort, as well as French lawmakers will be invited to see how the palm oil industry is regulated and to address their concerns on its effect on the environment.