Kota Kinabalu: The East Malaysia Planters’ Association (Empa), Malaysian Palm Oil Association (MPOA) and Malaysian Estate Owners’ Association (MEOA) have appealed to the State Government to review the implementation of assessment rates on palm oil mills and estate housing.
Empa, in a statement, said the associations have brought up the matter to Deputy Chief Minister cum Local Government and Housing Minister Datuk Seri Dr Joachim Gunsalam during a meeting recently.
“Various district councils have issued letters and bills on assessment rates for palm oil mills and estate housing,” it said in a statement, Wednesday.
“In 2019, the State Government
introduced assessment rates for palm oil mills and estate housing but it was suspended following an appeal from the industry.
“However, it was re-introduced in 2021 which the industry once again appealed for exemption.”
The district councils responded by reducing the amount starting from the last quarter of 2021.
“Thereafter, some district councils have refused to renew the trading licences of palm oil mills and estates with outstanding assessment rates which can jeopardise their MSPO (Malaysian Sustainable Palm Oil) and RSPO (Roundtable on Sustainable Palm Oil) certification status,” said the statement. The Associations pointed out that the district councils currently do not provide any services, amenities, utilities and infrastructure to the palm oil mills and estates.
“Furthermore, the industry is already the highest taxed, including the 7.5 per cent Sabah Sales Tax.”
The Associations further stressed that the palm oil mills will pass the additional cost down to the FFB (fresh fruit bunches) producers who are mainly small and medium estates.
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