Thursday 28 Mar 2024
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KUALA LUMPUR (Dec 17): The Ministry of Primary Industries has applied to the Ministry of Finance for the 3% windfall profit levy to be returned to it so that it can fund its biodiesel programme and help smallholders, says minister Teresa Kok.

As a commodity, crude palm oil is subject to price fluctuations. Hence, there is a need for a mechanism to stabilise its price in order for the biodiesel policy to succeed.

"We need the palm biodiesel stabilisation fund. We have applied to the Ministry of Finance to give us the 3% windfall levy," Kok told the media at an editors' briefing today.

The government imposes a windfall profit levy of 3% on every tonne of fresh fruit bunch (FFB) in Peninsular Malaysia when crude palm oil prices reach above RM2,500 per tonne and 1.5% in Sabah and Sarawak on prices above RM3,000 per tonne.

"All this while, the 3% is channelled to the consolidated fund under the Finance Ministry, we hope to get this fund over as a palm biodiesel stabilisation fund and we also wish to use some of it to do more promotion and help smallholders, so that smallholders benefit from the high price," she added.

It was reported that the ministry will be implementing the B20 biodiesel programme in stages nationwide next year.

The CPO third month futures was last traded at RM2,890 per tonne in the morning session today.

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