Raise palm oil windfall tax, use it for mass screening, Najib tells govt

 

Najib Razak says the current market price of RM4,700 per tonne is far higher than the RM1,800 per tonne production cost.

PETALING JAYA: Former prime minister Najib Razak has proposed for the windfall tax on palm oil to be increased from 3% to 6% to boost the federal government’s coffers.

The funds earned from the tax hike can then be used to conduct mass screening for free in areas under the movement control order (MCO), he said.

With prices currently at RM4,700 per tonne, Najib said the 3% increase could double the government’s earnings to RM2.4 billion.

Putrajaya was reported to have earned RM300 million in the first quarter of 2021, which would accumulate to RM1.2 billion a year if the high prices for palm oil remain, he said.

“I believe that raising the 3% windfall tax, or RM282 per tonne, would not have a big impact on palm oil producers, since the current market price of RM4,700 per tonne is far higher than the production cost of around RM1,800 per tonne.

“So I propose that the government raise the windfall tax from 3% to 6% to boost its earnings by RM1.2 billion.

“RM300 million from this can then be allocated for free mass screenings for 2.5 million individuals in areas under MCO.

“The remaining RM900 million can be used to subsidise chicken feed, as long as palm oil prices remain high, to keep chicken prices from spiking,” he said in a Facebook post today. - FMT