25.11.2020 (www.theborneopost.com) - KUCHING (Nov 25): Malaysian Palm Oil Board (MPOB) is proposing an additional cess payment of RM5 for every metric tonne of crude palm oil to be imposed for one year starting January 2021.

This will come to force once the proposed Malaysian Paim Oil Board (Cess) Order 2020 is approved for implementation.

In an announcement on its licensing and enforcement division website (led.mpob.gov.my), MPOB said it is now welcoming public feedback the draft of Malaysian Paim Oil Board (Cess) Order 2020 starting Nov 20 until 30.

The draft of the Order in both Bahasa Malaysia and English can now be viewed online through the website.

It also said members who are keen to provide any feedback and/or suggestions can do so by writing to MPOB via the attached form or do it online at MPOB website.

The same notice also explained this additional cess payment is intended to contribute towards the dire need for research and development on palm oil mechanisation and automation in Malaysia to ensure the sector’s sustainability and survival.

The draft of the Malaysian Paim Oil Board (Cess) Order 2020 amongst others stated that a person who produces crude palm oil shall, in addition to the cess payable under the Malaysia Palm Oil Board (Cess) Order 2019 [P.U. (A) 361/2019), pay to the Board a cess of RM5 for every metric tonne or part of a metric tonne of crude palm oil produced by him.

It is also stated that cess payable shall be paid to the Board not later than the last day of each month of a calendar year on crude palm oil produced by him during the preceding month.

It proposed that a person who fails to comply shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding RM1,000 or to imprisonment for a term not exceeding six months or to both.

This year, the industry players are paying RM14 cess per metric tonne of palm oil produced, which was an increase of RM1 per metric tonne compared to the previous year.

The crude palm oil producers will have to pay RM19 cess per metric tonne if the Malaysian Paim Oil Board (Cess) Order 2020 is approved, on top of the various levies and taxes that have been imposed on them.