Govt Expected To Earn Palm Oil Windfall Profit Levy Of RM500m In 2021 — MPOB by admin- Tuesday, December 1st, 2020 07:57:20 AM
The government is predicted to earn palm oil windfall profit levy of approximately RM500 million in 2021 if the rate of crude palm oil (CPO) recorded is among RM3,000 and RM3,500 per tonne in comparison to expectancies of RM348 million a 12 months for this year.
Malaysian Palm Oil Board (MPOB) chairman Datuk Ahmad Jazlan Yaakub stated the revenue collection is not not possible if the CPO price stays above the RM3,000 in line with tonne stage.
“The predicted revenue of RM348 million for this yr is an estimate primarily based on extended CPO prices due to the fact June.
“We desire that with manufacturing and demand, as well as good weather conditions, it isn’t always not possible that it (the providence profit levy) can attain approximately RM500 million next 12 months whilst the u . S . A . Faces financial demanding situations,” he advised a press convention here nowadays.
In 2019, the providence earnings levy revenue amounted to RM256,000.
Ahmad Jazlan stated India is projected to continue uploading crude palm oil from Malaysia subsequent year with a double-digit increase.
This is pushed by India’s reduction of customs duty on crude palm oil to 27.Five% from 37.Five% on Nov 27, 2020.
For the period of January to October 2020, palm oil exports to India amounted to 1.97 million tonnes worth RM5.15 billion.
Since June 2020, demand from India commenced to growth because of sports to boom stocks within the u . S . A . And demand is starting to recover following the rest of lockdown measures and slow economic healing.
On the MPOB Cess Order 2020, scheduled to take effect on Jan 1, 2021, he said the problem is still inside the study and dialogue degree.
“We decided to impose the Cess Order at an appropriate time, for example, whilst palm oil is at its maximum stage during the last 8 years.
“The cess gathered (RM5 one-off) might be again for the sustainability of the palm oil enterprise and for the commodity to stay aggressive, now not for MPOB financial savings,” he stated.
Ahmad Jazlan stated the revenue collected from the cess is truely no longer enough for the MPOB’s operations as a whole because it needs to be dispensed to the Malaysian Palm Oil Council (MPOC), which is a separate entity that conducts palm-related activities and campaigns.
The MPOB Cess Order 2020 sets a further charge of RM5 cess in step with tonne of CPO and crude palm kernel oil (CPKO) produced, compared with the modern total quantity of RM14 cess consistent with tonne of CPO produced.