KUALA LUMPUR: The Plantations and Commodities Ministry will look into the issue of the windfall profit levy raised by industry players.
The ministry said it will consult with relevant parties.
Its minister Datuk Seri Johari Abdul Ghani said industry players have voiced their concerns due to the increased cost, reaching almost RM3,000 per tonne.
Johari, who is also the Titiwangsa member of parliament, said the 3 per cent windfall tax is applied to palm oil prices exceeding RM3,000 per tonne in Peninsular and above RM3,500 per tonne in Sabah and Sarawak.
"The cost used to range between RM1,500 and RM1,800, but now it has escalated to from RM2,800 to RM3,000, with even higher figures in certain areas," he said when met by reporters after officiating the 2024 Palm Oil Economic Review and Outlook Seminar.
He said the ministry will conduct a comprehensive examination of the cost, emphasising the need for certain adjustments given the elevated cost.
"When implementing a windfall tax, the typical expectation is that profits exceed your costs. However, if the costs have risen, adjustments will become necessary. This, however, requires in-depth discussions and details of the cost involved," he added.
ENDS