Malaysia To Collect Nearly US$72.94 Million From Windfall Tax On Palm Oil In Q1 2021
KUALA NERUS (Terengganu, Malaysia), May 8 (NNN-Bernama) — Malaysian government is expected to earn RM295 million (US$72.94 million) in windfall profit tax in the first three months of this year with crude palm oil (CPO) prices rising above RM2,500 a tonne. (US$1 = RM4.11)
Plantation Industries and Commodities Minister Dr Khairuddin Aman Razali said this was a positive development amid the lower revenue problem faced by the country due to the effects of the COVID-19 pandemic.
He said his ministry estimated that the government would collect an even bigger windfall profit levy for the three months that followed should CPO prices, which have surpassed RM4,000 per tonne, remain at that level.
“Although we do not expect CPO prices to last at RM4,000 per tonne, we forecast they would average at between RM3,500 and RM3,800 per tonne based on the rising trend in March, April and May.
“If this were to continue, the government would gain an even higher revenue which would be given back to the people,” he told reporters here Saturday.
According to Khairuddin, CPO prices have climbed to RM4,652 a tonne on May 6, the highest level in the country’s palm oil industry history, bringing relief to about 121,000 settlers and 300,000 smallholders nationwide.