KUALA LUMPUR: The government does not intend to abolish the windfall profit levy (WPL) on the palm oil industry at the moment, says the finance ministry.
However, the ministry said the government is always open to studying the method of imposing this levy, including the levy rate and profit threshold level, taking into account the industry’s survival and the cost of production from time to time.
The ministry said the WPL on the palm oil industry had been implemented since 1999 using the same calculation formula as used today, except that the levy rate and threshold value have been amended several times.
The windfall profit threshold value set for the purpose of imposing the WPL on palm oil has been revised several times since this levy was implemented, it added.
The original threshold value was RM2,000 a tonne for crude palm oil and the latest threshold value is RM3,000 for Peninsular Malaysia and RM3,500 for Sabah and Sarawak, the ministry said in a written reply to a question from Ngeh Koo Ham (Beruas-PH) on the possibility of abolishing the WPL. The reply was published on Parliament’s website today.
The ministry said the original levy rate for Sabah and Sarawak, which was 1.5%, had been adjusted to the levy rate for Peninsular Malaysia at 3%.
“Although the levy rate has been equalised, the windfall profit threshold value for Sabah and Sarawak is set higher than for Peninsular Malaysia to take into account the higher production cost for oil palm in Sabah and Sarawak,” it added. - FMT
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