Higher windfall profit tax collection of over RM1 bln helps govt to replenish coffer - Zuraida

KUALA LUMPUR: The government is expected to collect more than RM1 billion in windfall profit tax levy (WPL) in 2022 based on the projected average crude palm oil (CPO) price of RM4,250 per tonne and production of 19 million tonnes.

Minister of Plantation Industries and Commodities (MPIC) Datuk Zuraida Kamaruddin said the palm oil industry is also estimated to generate another RM2 billion worth of tax revenue from export tax this year.

''This development is timely considering that the government has spent billions of ringgit over the past two years to help tide over Malaysians impacted by the COVID-19 and economic slump.

''The MPIC is glad that it can complement the government's efforts to replenish its coffers,'' she said in a statement today.

She is also confident that the favourable global prices of commodities and robust growth in the sector will help expedite the National Recovery Plan (NRP).

The palm oil export revenue for 2022 is expected to grow by 11.8 per cent to RM72.25 billion from RM64.62 billion in 2021, while the export of timber and timber products is projected to increase by 5.52 per cent to RM24 billion from RM22.74 billion previously.

"Plantation owners, from listed conglomerates to smallholders, as well as other industry players all stand to gain from the increased revenue," she noted.

Zuraida said the increase in tax revenue will also enable the government to carry out more socio-economic projects in the spirit of Keluarga Malaysia, including building schools, hospitals, roads and delivering financial aid to the needy.

On its part, the ministry will step up efforts to help industry players under its purview to seize this economic opportunity, including opening up more markets for Malaysian commodities.

"Over the past two months, I have led extensive trade missions abroad to open up markets for our commodities. Countries like Iran, Turkey, India and China have since expressed interest to beef up imports of our commodities.

"Some countries have already increased their purchase of these products, while others are in the midst of finalising trade deals," she added.

Zuraida reckons China is expected to import an additional 500,000 tonnes of palm oil from Malaysia in 2022, while India would be the top market destination for Malaysian palm oil with an additional import of two million tonnes this year.

"India is expected to face edible oil shortages due to its reliance on sunflower oil from Ukraine and changes to Indonesia's oil palm export policy. Malaysia's palm oil will help fill this vacuum in India," she said.

The MPIC will also assist industry players, especially smallholders to make their businesses more sustainable through efforts to automate their businesses, information technology adoption enhancement and reduce foreign labour dependency.

-- BERNAMA