Thursday 28 Mar 2024
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KUALA LUMPUR (Jan 16): Primary Industries Minister Teresa Kok said today a special committee will be set up to manage Malaysia's crude palm oil (CPO) windfall tax trust account.

Speaking at the Malaysian Palm Oil Board's (MPOB) Review & Outlook Seminar 2020 here today, Kok said the proposed trust account is estimated to have RM200 million collected from the CPO windfall tax. At least half of the amount will be reserved for the nation's biodiesel stabilisation fund, she said.

"Finally we got approval from (the) Ministry of Finance to agree for Ministry of Primary Industries to manage all the collections from the windfall levy, and we are going to give back to the industry and grow the industry. The trust account will be a different segment under the palm oil industry.

"Industry players will be invited to be part of the committee and we will invite representatives from Finance Ministry to be part of the committee so we all can manage this fund in a transparent manner and discuss on how to give back to the industry," Kok said.

Effective Jan 1, 2020, a 3% windfall tax per tonne is imposed on planters in Peninsular Malaysia if CPO prices surpass RM2,500 a tonne, earlier news reports quoted MPOB as saying.

For planters in Sabah and Sarawak, a 1.5% windfall tax will be slapped if CPO prices exceed RM3,000 per tonne, MPOB said.

At Bursa Malaysia's 12:30pm afternoon break today, CPO for March 2020 settled unchanged at RM2,945 a tonne after trading above RM3,000 in recent days.

On Tuesday (Jan 14), it was reported that March 2020 CPO were traded at RM3,013 a tonne.

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