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RAUB: The Government is expected to earn palm oil windfall profit levy of more than RM500 million in 2021 if the price of crude palm oil (CPO) remains stable at RM3,000 per tonne until next year.

Malaysian Palm Oil Board (MPOB) Chairman Datuk Ahmad Jazlan Yaakub said this is an important contribution of the palm oil industry for the plantation sector to gross domestic product (GDP) as the country grapples with the Covid-19 pandemic.

"Palm oil prices may rise higher as foreign demand continues to rise. This is also because our stock is below 2.0 million tonnes, which is about 1.6 million tonnes.

“The palm oil windfall profit levy imposed on palm oil sales revenue at the current price level will enable the country to collect levy estimated at RM348 million.

"If the price remains stable at the RM3,300 per tonne and above level until 2021, the government may earn RM500 million or more," he told a press conference after the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme for Smallholders Campaign, here, Saturday.

Ahmad Jazlan said the windfall profit levy of three per cent is only imposed when the price of palm oil reaches RM2,500 per tonne and above for the Peninsula, and 1.5 per cent for Sabah and Sarawak when the price fetches RM3,000 per tonne and above.