Windfall Tax On Palm Oil To Exceed Rm1bil In 2022 Says Minister

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Palm oil export revenue is expected to grow by 11.8% to RM72.25 billion this year.KUALA LUMPUR: The government is expected to collect more than RM1 billion in windfall profit tax levy in 2022 based on the projected average crude palm oil price of RM4,250 per tonne and the production level of 19 million tonnes.
Plantation industries and commodities minister Zuraida Kamaruddin said the palm oil industry is also estimated to generate another RM2 billion in revenue from export tax this year.
“This development is timely considering that the government has spent billions of ringgit over the past two years to help tide over Malaysians impacted by the Covid-19 and economic slump.
“My ministry is glad that it can complement the government’s efforts to replenish its coffers,” she said in a statement today.

Zuraida Kamaruddin.Zuraida is confident that the favourable global prices of commodities and robust growth in the sector will help to expedite the National Recovery Plan.
Palm oil export revenue for 2022 is expected to grow by 11.8% to RM72.25 billion from RM64.62 billion in 2021, while the export of timber and timber products is projected to increase by 5.52% to RM24 billion from RM22.74 billion previously.
“Plantation owners, from listed conglomerates to smallholders, as well as other industry players all stand to gain from the increased revenue,” she said.
Zuraida said the increase in tax revenue will also enable the government to carry out more socio-economic projects, including building schools, hospitals and roads, and delivering financial aid to the needy.
On its part, the ministry will step up efforts to help industry players to seize this economic opportunity, including opening up more markets for commodities.
“Over the past two months, I have led trade missions abroad to open up markets for our commodities. Countries like Iran, Turkey, India and China have expressed interest to beef up imports of our commodities.
“Some countries have already increased their purchase of these products, while others are finalising trade deals,” she said.
Zuraida said China is expected to import an additional 500,000 tonnes of palm oil from Malaysia in 2022, while India will be the top market destination for Malaysian palm oil with an additional import of two million tonnes.
“India is expected to face edible oil shortages due to its reliance on sunflower oil from Ukraine and changes to Indonesia’s oil palm export policy. Malaysia’s palm oil will help fill this vacuum in India,” she said.
Zuraida said the plantation industries and commodities ministry will also assist industry players, especially smallholders, to make their businesses more sustainable through efforts to automate their businesses, enhance the adoption of information technology and reduce foreign labour dependency. - FMT

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