KUALA LUMPUR, Oct 26 — The government does not intend to abolish the windfall profit levy (WPL) on the palm oil industry at the moment, said the Ministry of Finance (MoF).
However, the government is always open to studying the methods of imposing the levy, including its rate and profit threshold level, to consider the industry’s survival and the cost of palm oil production from time to time.
MoF said the WPL on the palm oil industry has been in place since 1999 using the same calculation formula up to the present, except for the levy rate and threshold value, which have been amended several times.
“The windfall profit threshold value set for the purpose of imposing the WPL on oil palm fruit has been revised several times since the levy was implemented.
“The original threshold value was RM2,000, and the latest threshold value is RM3,000 for Peninsular Malaysia and RM3,500 for Sabah and Sarawak,” said the ministry.
It was providing a written reply to Beruas MP Datuk Ngeh Koo Ham’s query on the possibility of abolishing the WPL, published on the Parliament’s website today.
MoF said the original levy rate for Sabah and Sarawak, which was 1.5 per cent, has been adjusted to the three per cent levy for Peninsular Malaysia.
“Although the levy rate has been equalised, the windfall profit threshold value for Sabah and Sarawak is set higher than for Peninsular Malaysia when considering the higher production costs of oil palm fruit in the states,” it added.
— Bernama
