BANGI: The price of palm oil will become uncompetitive compared to other producing countries if the windfall profit levy (WPL) on palm oil in this country is not revised.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani stated that his ministry would examine and review the WPL, with the findings to be submitted to the Ministry of Finance (MoF).
“Let the MoF review this so we can reassess and indirectly encourage replanting. When this product becomes competitive, more investors will be attracted to the land we have,“ he told reporters after the launch of the Transfer of Technology (TOT) 2024 event at the Malaysian Palm Oil Board (MPOB) headquarters here today.
Yesterday, during a question-and-answer session in the Dewan Rakyat, Johari said the ministry would collaborate with the MPOB to review the WPL on palm oil for Budget 2025, aligning with the current commodity prices.
“Previously, the cost of producing one metric tonne of palm oil was approximately RM1,800, but now it ranges from RM2,800 to RM3,200, depending on the size.
“The cost structure at RM1,800 may have been suitable for WPL, but it is no longer appropriate when the market trades at about RM3,800 to RM3,900, with costs exceeding RM3,000,“ he said.
