<article><p class="lead">The Malaysian estate owners' association (MEOA) is urging the national palm oil board (MPOB) to consult stakeholders and ensure transparency before raising its palm oil tax.</p><p>The MPOB cess order 2020 proposes raising levies that producers pay on crude palm oil (CPO) and crude palm kernel oil output by 5 ringgit/t ($1.23/t) from 1 January 2021. The MPOB collects 11 ringgit on each tonne produced for use in industry research and development (R&amp;D), regulatory and promotional activities, as well as 2 ringgit/t for replanting and biofuels programmes, and 1 ringgit/t for environmental initiatives. Combined receipts from these taxes should exceed 300mn ringgit in 2020. </p><p>Additional funds accrued in 2021 will be funnelled towards essential mechanisation and automation R&amp;D, according to the MPOB. But the industry requires clarity and input into specifics including fund management and allocation and how potential R&amp;D projects will be prioritised, said the MEOA. The MPOB could also consider reallocating funds collected from the windfall profit levy – forecast to reach 760mn ringgit in 2020 on an average CPO price of 3,200 ringgit/t – towards mechanisation and automation research.</p><p>The public can submit feedback on the draft order until 30 November.</p><p class="bylines">By Lauren Moffitt</p></article>
