MPOC condemns France's decision to increase import taxes on palm oil

The Malaysian Palm Oil Council (MPOC) has condemned France's decision on the palm oil import tax from Malaysia and other emerging economies.

MPOC in a statement said there is no economic rationale for the proposed tax and calls it disproportionate and discriminatory.

The tax is passed under the Biodiversity Bill, with a new 90 euro per tonne tax on palm oil. This follows an attempt in January by the French Senate to place a 300 euro tax on palm oil.

MPOC chief executive officer Dr Yusof Basiron said the claim that the proposed tax is based on the flimsy ground that palm oil is under-taxed in France is false.

Earlier before the decision was made Yusof said:

"The Assemblée Nationale has also proposed a 'differential' tax which would discriminate between different palm oil producers based on unspecified, unworkable and discriminatory views of sustainability. This action clearly undermines the national development goals of developing countries. The differential tax proposal is a clear violation of both WTO and EU rules," he said in the statement.

"Malaysia is a good friend of France and French Foreign Minister Jean-Marc Ayrault had promised the people of Malaysia that he would not tax palm oil. Mr Ayrault had promised the 300,000 small farmers in Malaysia that France would not harm them with a new tax. We expect this promise to be kept," he said.

"MPOC asks the French Government to reject these discriminatory and unjust tax proposals, which will harm jobs, poverty alleviation efforts and economic growth in both France and Malaysia."

Palm oil contribution to France

Palm oil contributes significantly to the French economy where 4,600 jobs in France are dependent on palm oil imports.

The French senate had before this accused Malaysian and Indonesian palm oil industry for deforestation and harming the ecosystem. They also claimed that the palm oil produced by the two countries are not healthy for consumption.

Earlier this month, Minister of Plantation Industry and Commodities Datuk Amar Douglas Uggah Embas had said the accusation was baseless.

He said palm plantations in Malaysia are regulated by approximately 50 rules and regulations.