Malaysian palm oil associations on Monday (Nov 6) called for the government to review a windfall profit levy on the palm oil industry.

In a statement, the groups also urged the government to raise the profit threshold level for the levy, and to revert the 3 per cent tax rate for planters in Sabah and Sarawak states back to the previous rate of 1.5 per cent. That cut was recently proposed by the government.

Malaysia, the world’s second-largest palm oil exporter, imposes a windfall levy of 3 per cent on palm oil prices above RM3,000 (S$870) per metric ton in Peninsular Malaysia and above RM3,500 per ton in Sabah and Sarawak – the country’s largest palm oil producing states.

Malaysia’s plantations and commodities ministry in September said it was reviewing the windfall levy and hoped to complete it next year. It has also said it does not plan to abolish the tax. REUTERS