Govt to channel 50% of CPO windfall tax to biofuel fund

The finance ministry has agreed that at least half of the CPO windfall levy will be used for the biodiesel stabilisation fund.

KUALA LUMPUR: At least 50% of the crude palm oil (CPO) windfall tax will be channelled to the biofuel stabilisation fund, which is expected to be set up within the first quarter of this year, Primary Industries Minister Teresa Kok said.

“The finance ministry has given us the green light that at least half of the windfall levy will be used for the biodiesel stabilisation fund.

“We are still working with them on the details,” she told reporters on the sidelines of a “We Love Palm Oil” forum here today.

Earlier, Kok told the forum the government aimed for 70% of the nation’s oil palm cultivation areas to be Malaysian Sustainable Palm Oil (MSPO) certified by March.

“As of Jan 6, about 62.4% or 3.65 million hectares out of 5.85 million hectares of oil palm plantations in Malaysia are MSPO certified,” she said.

Also certified are 341 of the 452 palm oil mills in the country. - FMT