KUCHING: The state government will have discussion with the federal government on providing incentive through sales and service tax (SST) to oil palm operators in Sarawak.
Deputy Minister of Food Industry, Commodity and Regional Development (M-FICORD) Martin Ben said the imposed tax is under the provision of the federal government.
“The tax is a federal matter and we will bring up this issue to DOPPA (Dayak Palm Planters Association) as they represent smallholders but these are the basis on how we can return the revenue later.
“How we get that income from the tax later, probably through the products produced by smallholders. That will need to be studied by the Malaysian Ministry of Plantation and Commodities,” said Martin during a press conference of the roundtable session at BCCK yesterday.
He added that discussion with the federal government would be held as the tax was imposed by them.
Martin said that one way could be through incentives from the products collected from the smallholders.
“Even the big industry players are asking for the return and maybe we will focus first on helping the smallholders.
On a different matter related to the setting up of national rice fields on a large scale for domestic use, Martin opined that this is positive for Sarawak.
“I think if it is taken care of and operates well, this is good. We have also identified some of the locations for the rice fields to be set up.
“If there are empty lands somewhere, maybe we can do something with it together with agencies here in Sarawak,” said Martin.
Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi had said the government would establish rice fields in Sarawak.
According to the Minister of Rural and Regional Development (KKDW), the effort aimed to ensure that the supply was sufficient for domestic consumption and food security.
He said FELCRA would work with the state government to establish paddy fields to ensure sufficient supply for domestic consumption and it would be done on a large scale.
