The Ministry of Plantation and Commodities is proposing for the windfall profit levy price for Sabah and Sarawak to be at 1.5 percent under Budget 2024, compared to the current 3.0 percent.
Deputy Prime Minister and MPC Minister Datuk Seri Fadillah Yusof said the matter was raised by industry players during a dialogue held by the ministry.
“This was one of the things that they had raised. They are not objecting to the WPL, but if it is imposed, they want to look at how the levy can benefit the industry, including in terms of incentives and programmes such as oil palm replanting,” he said.
To account for rising production costs, the Malaysian Palm Oil Association requested the government to raise the WPL price by RM500 per tonne of crude palm oil (CPO) to RM3,500 per tonne for Peninsular Malaysia, from RM3,000 per tonne currently, and to RM4,000 per tonne from RM3,500 per tonne for Sabah and Sarawak.
The MPOA also called for tax incentives to support large-scale replanting initiatives, recognising its critical role in protecting the productivity of the sector to support its supply chain and maintain competitiveness.
Fadillah said these commitments were firmly embedded in various national government policies, including the 12th Malaysia Plan, National AgriCommodity Policy 2021-2030, National Automotive Policy 2020 and National Energy Policy 2022-2040.
