Fadillah: Putrajaya to discuss with S’wak on oil palm FFB taxation

ASAJAYA (Nov 25): Putrajaya will discuss with the Sarawak government on the taxation of oil palm fresh fruit bunches (FFBs), said Deputy Prime Minister Datuk Seri Fadillah Yusof.

The federal Plantation Industries and Commodities Minister said this following concerns by oil palm smallholders that oil palm FFBs bought by factories were considered as Crude Palm Oil (CPO) and would be imposed to the smallholders as Sales Tax.

“They have appealed so that the tax is charged on processed, exported and sold and not based on FFBs.

“I will discuss this and some parts of it will need to be discussed with the Sarawak government as it is taxed by them, so we will discuss ways determined by the state government. We’ll see – we may hold discussions next year,” he said when met by reporters after his visit at a cocoa plantation at Kampung Serpan Laut here today.

Earlier at Kampung Seruyuk, Deputy Minister for Infrastructure and Port Development and  Sadong Jaya assemblyman Datuk Aidel Lariwoo had expressed the concerns regarding the taxation of FFBs to smallholders.

“I hope that the Deputy Prime Minister can look into this,” Aidel said.

Meanwhile, after meeting with smallholders of agricommodities today, he summarised that they seek help in terms  of agricultural input such as fertilisers and pesticides, requests for more weighbridges, as well as technical support and advice.

“For example here in Asajaya, we want to revive the cocoa industry here and we’ve identified that the smallholders here need the technical support,” he added.

Also present at the event was Minister of Tourism, Creative Industry and Performing Arts Dato Sri Abdul Karim Rahman Hamzah, who is also Asajaya assemblyman.