KUALA LUMPUR :Malaysia’s finance ministry will not abolish a windfall profit levy on the palm oil industry, state news agency Bernama reported.
The ministry is open to periodically studying the tax rate and threshold for levying the tax to time to take into account the cost of palm oil production, Bernama reported late on Thursday, citing the finance ministry’s written response to parliament.
Planters in Malaysia, the world’s second-largest producer of palm oil, have for years asked the government to reassess the tax rate and the threshold for the windfall profit tax.
Malaysia imposes a windfall levy of 3 per cent on palm oil prices above 3,000 ringgit ($627.88) per metric ton in Peninsular Malaysia and above 3,500 ringgit per ton in Sabah and Sarawak – the largest palm oil producing states in the country.
Last month, Malaysia’s plantations and commodities ministry said it was reviewing the windfall tax and hoped to complete it next year.
($1 = 4.7780 ringgit)