KUALA LUMPUR, Oct 29 (Bernama) — The imposition of State Sales Tax (SST) as well as logistics and transportation costs are the main factors behind the difference in the purchase price of fresh fruit bunches (FFB) between Sabah and the peninsula, said Deputy Plantation and Commodities Minister Datuk Seri Huang Tiong Sii.
State Sales Tax, Logistics Costs The Main Factors In FFB Purchase Price Differences Between Sabah And Peninsula
Oil palm, Sabah, KPK, MPOB, fresh fruit bunch pric
BE Bernama 
Key takeaways
Deputy Minister Huang Tiong Sii attributed FFB price differences between Sabah and Peninsular Malaysia to Sabah's 7.5 percent state sales tax and higher logistics costs due to longer transportation distances.
- Sabah imposes a 7.5 percent state sales tax on crude palm oil, which is not applied in the peninsula.
- Longer distances from plantations to factories in Sabah and Sarawak result in higher logistics costs compared to the peninsula.
- MPOB uses a daily reference price formula and controlled weighing systems to help ensure fair and transparent FFB pricing.
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- Bernama State Sales Tax, Logistics Costs The Main Factors In FFB Purchase Price Differences Between Sabah And Peninsula (this story)
