15/12/2008 (Daily Express News), Kota Kinabalu: State Finance Ministry Permanent Secretary Datuk Yusoff Kassim hit out at Sri Tanjung Assemblyman Jimmy Wong for claiming that the State Government under Chief Minister Datuk Seri Musa Haji Aman has not done anything to address problems affecting oil palm smallholders in the State.

"It is very unfortunate and mischievous for the YB from Tawau to make such a statement because the State Government under Musa is not only concerned over the plight of the industry but also the smallholders," he said, Sunday.

Wong was reported as saying he would resign as Assemblyman if the Chief Minister could prove that the smallholders are not being subjected to the 7.5 per cent sales tax.

Wong said the issue was very important as it meant the survival of the small and medium size planters and the whole industry and that the State Government cannot keep ignoring this and should act now before it is too late.

To this, Yusoff said a task force had been formed within the Finance Ministry to specifically address these issues.

"The factor affecting the industry is global in reality especially exacerbated by the slow demand for Crude Palm Oil (CPO). It is not just the price that is affecting smallholders. Rather the cost of milling, transportation, labour and storage," he said.

He said the Government had highlighted in the recent State Assembly Budget 2009 sitting that the sales tax was imposed on CPO only. This means the sale of Fresh Fruit Bunch (FFB) was not affected.

However, the State Government would give due attention in the interest of the industry as a whole.

"To put the record straight, revenue collected from the sales tax contributed to the overall State economic growth," he said, adding that the sales tax imposed on CPO is in reality re-invested into the State's development.

Yusoff added that the Government had from the beginning been involved in assisting the development of smallholders by providing all forms of assistance including free seedlings, fertiliser subsidy and financial assistance by the Malaysia Palm Oil Board (MPOB) if the smallholders diversify their activities with other crop and livestock.

He said the Sabah Land Development Board (SLDB) and Sawit Kinabalu were managing their smallholders with assistance like transportation and FFB pricing.

He assured that the Government would continue to monitor and assist the industry and that in the future it hoped to provide more assistance or enhance the current assistance to smallholders.