KUALA LUMPUR: The Ministry of Primary Industries is currently in talks with the Ministry of Finance (MoF) to set up a biodiesel stabilisation fund and has proposed that three per cent of the windfall tax imposed on palm oil exporters be refunded and channelled back to the fund.
Quoting its minister Teresa Kok, Bernama said the windfall tax is currently imposed on palm oil exporters when palm oil prices in the physical market surpass RM2,500 per tonne.
The fund would be useful to assist the smallholders and subsidize biodiesel blending (for the petroleum companies) when CPO prices hover above diesel.
She revealed that the MoF did not object to the idea and agreed with the request.
However, the minister said it was still at discussion level and the reason being that the CPO price had only risen a few weeks ago.