Malaysia government proposes cut in windfall tax on palm industry

MALAYSIA’S plantations and commodities ministry has proposed a cut in windfall levy for palm oil producers in the states of Sabah and Sarawak to 1.5 per cent from 3 per cent, state news agency Bernama reported on Tuesday (Oct 3), citing Minister Fadillah Yusof.

A proposal has been made to the finance ministry as part of Malaysia’s 2024 budget announcement due next week, the minister said, according to Bernama.

Sabah and Sarawak are the largest palm oil producing states in the country.

Planters in Malaysia, the world’s second-largest producer of palm oil, have for years asked the government to reassess the tax rate and the threshold for the windfall profit tax.

Malaysia imposes a windfall levy of 3 per cent on palm oil prices above RM3,000 (S$871.8) per ton in Peninsular Malaysia and above RM3,500 per ton in Sabah and Sarawak. REUTERS