Thursday, November 26, 2020

Sarawak oil palm planters oppose MPOB’s proposed RM5 cess on CPO for 2021

Soppoa says MPOB should ask the Finance Ministry for more funds for R&D instead of imposing the cess. — Picture by Yusof Mat Isa
Soppoa says MPOB should ask the Finance Ministry for more funds for R&D instead of imposing the cess. — Picture by Yusof Mat Isa

KUCHING, Nov 26 — Sarawak Oil Palm Plantation Owners Association (Soppoa) has objected to the Malaysian Palm Oil Board’s (MPOB) proposal to impose an additional cess of RM5 for every metric tonne of crude palm oil (CPO) and crude palm kernel oil for a year starting January 2021.

Its chief executive officer, Andrew Cheng, said MPOB was trying to raise more than RM100 million per annum from the plantation sector with the cess and the association would not support it.

He pointed out that there was already research and development (R&D) activities and that MPOB had the funds for them although the board said the cess was to finance such activities.

“MPOB should get the Ministry of Finance to support them if more funds are required instead of increasing the cess which amounts to a 35.7 per cent increase as against current RM13 plus the RM1 just implemented beginning of this year when the economic downturn caused by the Covid-19 pandemic struck us all,” said Cheng.

This year, the industry players are paying RM14 cess per metric tonne of palm oil produced, which was an increase of RM1 per metric tonne compared to the previous year.

The crude palm oil producers will have to pay RM19 cess per metric tonne if the proposed Malaysian Palm Oil Board (Cess) Order 2020 is approved, on top of the various levies and taxes that have been imposed on them.

According to an industry source, Sarawak produced 4 million metric tonnes of CPO in 2019.

“Times that (4 million metric tonne) say with RM19, you could easily fetch RM76 million,” the source said.

The source also said Malaysia produced more than 16 million metric tonnes of CPO in 2019.

In an announcement on the proposed Malaysian Palm Oil Board (Cess) Order 2020 on its website, MPOB said the RM5 cess would be levied on CPO and crude palm kernel oil.

It said the additional Cess payment was intended to contribute toward the dire need for R&D on palm oil mechanization and automation in Malaysia to overcome the incessant labour shortage in the plantation sector.

In an announcement on its licensing and enforcement division website (led.mpob.gov.my), MPOB said it was now welcoming public feedback on the draft of the Malaysian Palm Oil Board (Cess) Order 2020 until November 30.

The draft of the order in both Bahasa Malaysia and English can now be viewed online through the website.

It also proposed that a person who fails to comply with the order shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding RM1,000 or to imprisonment for a term not exceeding six months or to both. — Borneo Post Online




Source: Malay Mail

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