Malaysia's commodities ministry seeks tax exemption for palm oil raw materials
FILE PHOTO: A worker unloads harvested oil palm bunches from a truck at a oil palm buying centre in Pontian, Malaysia April 24, 2025. REUTERS/Hasnoor Hussain/ File Photo
KUALA LUMPUR :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), it said on Tuesday.
The government expanded the SST in July, subjecting the palm oil industry and the oleochemical sector to the tax. Crude palm kernel oil and palm kernel olein oil currently face a 5 per cent levy.
The application for tax exempt status for both raw materials has been submitted to the Finance Ministry, deputy Plantation and Commodities Minister Chan Foong Hin told Parliament.
"This exemption is justified considering that both are raw materials in the production of oleochemical products and not final products subject to taxation by the government," he said.
Chan added that proposals to give SST exemption or relief for certain services that are critical to the industry's operations have also been considered to reduce cost pressure on industry players.
