The government will improve the levy collection mechanism and is prepared to review the windfall profit threshold by taking into consideration palm oil production cost, said Deputy Finance Minister I Datuk Seri Ahmad Maslan on Monday (April 3).
He said the Windfall Profit Levy Act 1998 was enacted to provide for the imposition of a levy on any item as prescribed by the Finance Ministry.
Ahmad added that the windfall profit levy had been collected by the government on crude palm oil, crude palm kernel oil, oil palm fruit and electricity since Jan 1, 1999.
“While no levy was imposed on them, companies which earned high revenue during the pandemic like glove makers were subject to a one-off Cukai Makmur (prosperity tax) to support the government’s initiative to help those who were affected,” he said during a question-and-answer session on the second and third reading of the Finance Bill in the Dewan Rakyat on Monday.
“We have no desire to impose a prosperity tax on banks but we expect them to contribute more towards corporate social responsibility (CSR) activities for the people. Similarly, so far there is no industry other than palm oil on which we want to impose a levy,” said Ahmad.
Between January and March 2023, the government collected RM251 million in windfall tax while the accumulated levy collection from 1999 till now amounts to RM7.6 billion.
Ahmad said the government used the revenue from the levy to subsidise cooking oil to stabilise prices as well as for reducing the cost of living and other development programmes.
This bill aims to validate the imposition, the levy and the collection of windfall levy and to indemnify the government and certain officials with regards to the windfall profit levy imposed, and its collection throughout Malaysia between Jan 1, 1999 and Jan 31, 2023.
Ahmad said the implementation of this bill in general does not involve any additional expenditure on the part on the part of the government.
