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CM Missunderstood me May 9, 2008

Posted by wong jimmy in Oil Palm, State Legislative Assembly.

At the State Legislative Assembly I was only asking in view of the double tax, one from the MPOB’s cess for Cooking Oil Stabilization Scheme (COSS) and the state government 7.5% sales tax.


I wanted to know whether the government would consider reducing the 7.5% sales tax, but was misinterpreted that I wanted it to be abolished.


The planters (smallholders) had complained to me that they had to pay even though if their FFB (Fresh Fruit Bunch) is only 1kilogram.


So I suggested the state government to consider exempting the 7.5% for smallholders with 100 acres below, where many smallholders are having 15 acres or even less, but are also being deducted on the spot FFB buyers or by CPO producers when they sell their FFB.


No doubt, government only tax after CPO price exceed RM1,000 per metric ton. But CM misunderstood me.


I think CM had in mind that only the CPO producers are being charged, but in reality those smallholders selling their FFBs are also being charged. This is ‘passing the buck’ and the government should investigate and clarify the matter especially to all the smallholders.


For the record, I am not on the ‘big towkays’ side, I stood at the state assembly to bring forth the smallholders plight especially those with 15 acres and below as the 7.5% defeats the government effort to eradicate poverty. So was I wrong, if I am wrong then I apologize, but I was telling the facts and not talking rubbish, so I hope the CM would investigate the matter thoroughly and clear the air.


There are still a lot of things that are unfavorable to oil palm planters such as the difference of price between Sabah and Peninsular. Though Sabah has the highest yield the selling price is lower, which is a great difference, but for now let us thrash out the sales tax first. 



1. John Kiansom - May 10, 2008

We must realize that almost 80% of the oil palm planters are big big companies from West Malaysia or even local, so what’s the point to defend them when we still have so many poor Rakyat here?

Yes, you can argue that you are fighting for the smallholders – the real Sabahans, but eventually the big big companies will be benefited, to take the big portion of the benefit.

These big big companies are making millions of ringgits every year out of this, should we really defend them?

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