KUALA NERUS – The government is expected to earn RM295 million in windfall profit tax in the first three months of this year, with crude palm oil (CPO) prices rising above RM2,500 a tonne.
Plantation Industries and Commodities Minister Datuk Mohd Khairuddin Aman Razali said this is a positive development amid the lower revenue problem faced by the country due to the effects of the Covid-19 pandemic.
He said his ministry estimated that the government will 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.
“Although we do not expect CPO prices to last at RM4,000 per tonne, we forecast they will average at between RM3,500 and RM3,800 per tonne based on the rising trend in March, April and May.
“If this is to continue, the government will gain an even higher revenue, which will be given back to the people.”
CPO prices have climbed to RM4,652 a tonne last Thursday, the highest in the country’s palm oil industry history, bringing relief to about 121,000 settlers and 300,000 smallholders nationwide. – Bernama, May 8, 2021
