AreaMalaysia

Commodity GroupOilseeds, oils and meals

CommodityOil palm

Date01/10/2018

Policy CategoryOther

Policy InstrumentTax policy

DescriptionRemoved – under the country’s newly introduced sales and service tax regime – the Goods and Service Tax on locally produced fresh oil palm fruit branches, with the aim of protecting the interests of the domestic oil palm industry.

NotesGovernment officials informed that, under the country’s newly introduced Sales and Service Tax (SST) regime, oil palm growers will not be subject to taxation. As opposed to the previous taxation scheme, where a Goods and Service Tax (GST) was levied on both locally produced and imported fresh oil palm fruit branches (FFB), the SST will only be collected on imported FFB, so as to protect the interests of the domestic oil palm industry.