The first three months of this year are proving fruitfull for the government as palm oil tax is expected to rake in RM295 million.
The crude palm oil (CPO) prices are rising above RM2,500 a tonne and it is welcome relief.
Plantation Industries and Commodities Minister Datuk Dr Khairuddin Aman Razali said “this was a positive development amid the lower revenue problem faced by the country due to the effects of the COVID-19 pandemic.”
The ministry estimated that it is possible the government would collect an even bigger windfall profit levy for the three months that followed, should CPO prices, which have surpassed RM4,000 per tonne, remain at that level.
They believe the price would average at between RM3,500 and RM3,800 per tonne based on the rising trend in March, April and May.
CPO prices have climbed to RM4,652 a tonne which is the highest level in the country’s palm oil industry history. Hopefully bringing relief to about 121,000 settlers and 300,000 smallholders nationwide who have suffered during the COVID-19 pandemic.