Malaysia Govt Moves To Relieve Tax Burden On Palm Kernel Raw Materials
Malaysia’s commodities ministry has requested SST exemptions for crude palm kernel oil and palm kernel olein oil, arguing they are raw materials, not final goods. The proposal, submitted to the finance ministry, aims to reduce costs for palm oil and oleochemical producers following a 5% levy introduced in July.
Malaysia’s commodities ministry is seeking to exempt crude palm kernel oil and palm kernel olein oil from the country’s sales and services tax (SST), Deputy Plantation and Commodities Minister Chan Foong Hin said on Tuesday.
The government expanded the SST in July, bringing the palm oil industry and the oleochemical sector under a 5 per cent levy. The exemption application for both raw materials has been submitted to the Finance Ministry.
Chan told Parliament that the request is justified as the oils are raw materials used in the production of oleochemical products, rather than final goods subject to taxation. He added that the ministry is also considering SST exemptions or relief for certain services critical to the industry to reduce operational costs for producers.
The move reflects efforts to ease cost pressures on Malaysia’s palm oil and oleochemical industries while maintaining regulatory oversight.
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Source : Business Today
