The Malaysian Palm Oil Board levied a cess on oil palm plantations, irrespective of their size, small , medium, or big. The estate owners had to subscribe to the terms of the government. The administration levied RM 2 on every increase of 100 Rm fro CPO.In 2007 and 2008, the prices stretched high. The cess was duly paid. Subsequently the price of fertiliser rose three fold. As a natural sequence , labour also expected a hike. So everything ended up high.The plantation holder, had to pay cess, had to pay higher for manure. and his work force had to be satisfied. Finally , he had to pay tax on his income. Thus he is doubly taxed by the government. No rebate was announced by MPOB.
In 2009, the prices sank low. They ranged between 270RM _290Rm. The cess was not enforced. But the other expenses did not come down with the down trend in price. Fertiliser remained as high as possible. No labourer would accept to decrease his wages ,as the price has fallen. The plantation holder has to face the brunt. The government keeps tight lipped.
This month ,that is in August the prices are looking up. But there is insufficient rains. The seven months had the estate owners in tight grip. It was more or less a hand to mouth existence. They had to tend their palms. give them proper nourishment and harvest the fruits in spite of increased expenses. Any negligence will have a telling effect, as the fruits will dwindle when not taken proper care.
The Malaysian government must take an initiative by giving certain tax concession to the owners while computing their income. It should also give an incentive to the estate owners when the price drop. Oil Palm is the vital source of revenue to the government.Any impetus and encouragement by way of tax rebate to the owners for the years 2007 and 2008 will be welcomed and bring cheer amongst them. Anticipating a discount in tax , as the estate owners experienced double taxation during the period.