Thursday 25 Apr 2024
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KUALA LUMPUR (March 21): The Malaysian government will lead a special mission to France to lobby against the plan to impose progressive tax on palm-based products that enter the country to up to 900 euros per tonne, before the Senate is set to vote, said deputy Plantation Industries and Commodities minister Datuk Noriah Kasnon.

Noriah said the ministry, together with Malaysian Palm Oil Board (MPOB) and Malaysian Palm Oil Council (MPOC), will extend a special mission to France in June or earlier, before the country's Senate sitting.

"[The special mission] aims to create awareness, understanding and raise the concern of the Senate members on the livelihood of our small farmer who are bound to be affected by the duty hike," Noriah told the Dewan Rakyat today.

She said small farmers made up of 40% of total farmers in the country.

Noriah said this when replying the supplementary question by Kuala Kangsar MP Wan Mohammad Khair-il Annuar Wan Ahmad, who is also the chairman of MPOB since 2013.

She believed the MPOB chairman would give his full support to this mission.

Noriah also outlined the measures taken by the Malaysian government so far, including a joint statement with the Indonesian government to object against the plan on Feb 4, 2016 to state that the move discriminates small farmers.

Plantation Industries and Commodities minister Datuk Douglas Unggah Embas had said the unreasonable tax which would be implemented from next year, was aimed at killing the palm oil industry.

In addition, the ministry has also met with the French Ambassador to Malaysia to present an objection letter on this issue to the French government.

"We are also working together with the French Sustainable Palm Oil Alliance and French Food Association to get the support of the Senate members and the National Assembly to lobby before the Senate sits to decide on the decision to raise the import duty. Let's hope that we succeed," Noriah said.

Recall the French Parliament had passed a Biodiversity Bill on Jan 21, that would raise the import tax of palm oil from 100 euros per tonne to 300 euros per tonne from 2017, 500 euros per tonne from 2018, 700 euros per tonne from 2019, and eventually up to 900 euros per tonne.

Earlier, Noriah said the European Union (EU) was the country's third palm oil export markets.

For the period of 2010 to 2015, Malaysia exported 13.49 million tonnes, worth RM35.64 billion of palm oil, to the EU. This is accounted for 21.74% of the total 62.03 million tonnes, worth RM165.4 billion export, for the said period.

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