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ISP Urges Government To Give Due Consideration On Impact Of GST On Planters
ISP Urges Government To Give Due Consideration On Impact Of GST On Planters
08/05/2015 (Bernama) - The Incorporated Society of Planters (ISP) hopes government would give due consideration and more attention to oil palm planters following the impact of the Goods and Services Tax (GST) on the sector as they are among the major taxpayers in the country.
ISP Management (M) Sdn Bhd Chairman, Kamal Milatu, said oil palm planters in Malaysia contributed about RM25 billion to RM30 billion a year in taxes on average to the state and federal governments.
He said the planters were taxed almost 40 sen for every ringgit of profit made, and this came in various types, among them windfall tax, cooking oil stabilisation scheme, research cess and corporate tax while other industries may only need to pay the corporate tax.
ISP Management is the business arm of ISP, a professional body incorporated in 1919 as a company limited by a guarantee and not having a share capital under the Companies Act.
Meanwhile, ISP Chairman, Daud Amatzin, added that with the imposition of various taxes and with the GST on board, the planters' profit margin had narrowed.
"Although most of them are still making profit but the cost has increased due to the GST. This might propel them to purchase their inputs like fertilisers and pesticides from the black market to maintain cost.
"We hope the government would give them more attention and consideration especially to continously educate them on GST and the government incentives provided to the industry and ways to access them.
"There are more than 400,000 smallholders in the country and they live in remote areas, most of them are still not clear on various issues," he said at a press conference on the 8th International Planters Conference 2015.
On the upcoming conference to be held on June 8-10 this year, ISP Chief Executive Officer, Azizan Abdullah, said the society was targeting about 800 participants this year and had secured 75 per cent of the target currently.
The association did not expect a big participation like in the previous conference due to the prevailing slowdown in the palm oil market, but hoped members would take part to benefit from knowledge sharing, he said.
The conference is being held once in every three years, and this year's edition is themed "Addressing the Triple Bottom Line: Changing Dynamics of the Oil Palm Industry."
Azizan said ISP was looking at promoting high standards in the planting profession by inviting renowned speakers to address on various issues in planting especially involving the triple bottom line known as the three Ps -- people, planet and profit.
ISP Management (M) Sdn Bhd Chairman, Kamal Milatu, said oil palm planters in Malaysia contributed about RM25 billion to RM30 billion a year in taxes on average to the state and federal governments.
He said the planters were taxed almost 40 sen for every ringgit of profit made, and this came in various types, among them windfall tax, cooking oil stabilisation scheme, research cess and corporate tax while other industries may only need to pay the corporate tax.
ISP Management is the business arm of ISP, a professional body incorporated in 1919 as a company limited by a guarantee and not having a share capital under the Companies Act.
Meanwhile, ISP Chairman, Daud Amatzin, added that with the imposition of various taxes and with the GST on board, the planters' profit margin had narrowed.
"Although most of them are still making profit but the cost has increased due to the GST. This might propel them to purchase their inputs like fertilisers and pesticides from the black market to maintain cost.
"We hope the government would give them more attention and consideration especially to continously educate them on GST and the government incentives provided to the industry and ways to access them.
"There are more than 400,000 smallholders in the country and they live in remote areas, most of them are still not clear on various issues," he said at a press conference on the 8th International Planters Conference 2015.
On the upcoming conference to be held on June 8-10 this year, ISP Chief Executive Officer, Azizan Abdullah, said the society was targeting about 800 participants this year and had secured 75 per cent of the target currently.
The association did not expect a big participation like in the previous conference due to the prevailing slowdown in the palm oil market, but hoped members would take part to benefit from knowledge sharing, he said.
The conference is being held once in every three years, and this year's edition is themed "Addressing the Triple Bottom Line: Changing Dynamics of the Oil Palm Industry."
Azizan said ISP was looking at promoting high standards in the planting profession by inviting renowned speakers to address on various issues in planting especially involving the triple bottom line known as the three Ps -- people, planet and profit.