DAP asks the government to waive the SST tax on oil palm smallholders

DAP asks the government to waive the SST tax on oil palm smallholders

An oil palm smallholder in Sri Aman has come forward to complain publicly on behalf of his smallholders group, where they have asked Leon Jimat Donald to highlight their problem in the oil palm small holding.

Mr Juan ak Kendawang of Punggu Dadak said he was raising his groups concerns about the falling prices of oil palm. He was asking for the help of the DAP to highlight to the State Government to waive the tax fees on smallholders especially in Sarawak.

'Do you know that our State Government Tax(SST)the mill on their sales of CPO at the rateof 2.5% when monthly price of CPO is at above RM1,000 & below RM1500?'

'The SST are 5% when monthly CPO price is above RM1,500.When the government tax the mill on the CPO,indirectly the Smallholders get tax as the FFB price paid by the mill is calculated based on the net price of CPO after less of Government Tax. We are simply not making money,' said a very upset Mr Juan.

'The oil palm planters have told me that they have no problem for the State Government to impose the tax provided that the smallholders are making money. But nowadays, the CPO price at an average of rm2400 and above most of the time and yet smallholders still cannot make money. Why they ask? ; it's because the FFB price paid by the Mill or Collectors are at RM300 – 380. Fertilizers and chemical prices have gone up; cost of labour has gone up too,' according to Leon Jimat Donald DAP Sarawak Vice Chairman.

'Therefore I strongly suggest that the State Government should revise or waive the State tax for the next few years unril the price of Oil Palm stabilizes. This is because the Tax structure, if continued, needs to be readjusted to a more realistic CPO price inorder not to create hardship for the Smallholders in Sarawak which now numbers more than 18,000 according to MPOB records,' added Leon.

Leon Jimat Donald next to Mr Juan ak Kendawang (blue shorts & cap) & his sons.