Budget 2021: Dutch Lady Milk Industries wants excise, SST, import duty exemption

KUALA LUMPUR (Nov 3): Dutch Lady Milk Industries Bhd (DLMI) wants exemption of the excise, sales and services tax (SST) on sugar sweetened beverages and import duty on dairy and dairy-based products in Budget 2021.

It said the exemptions would promote a conducive business environment.

The leading dairy company in Malaysia said the government should also at least align the sector with health policies such as the Ministry of Health's Healthier Choice Logo initiative which DLMI continues to champion.

"DLMI wholeheartedly backs the government's efforts to strengthen food security measures in ensuring that Malaysia is better positioned to deal with a global pandemic," it said in a statement today.

Meanwhile, it said allowances to encourage re-investment in Malaysia for existing foreign direct investments (FDIs) would be a welcome move, in addition to providing special allowances for developing programmes to enhance Malaysia’s food security and health agenda for the rakyat.

"We also recommend special incentives to be included in Budget 2021 for private-public partnerships to develop and grow domestic dairy sustainability programmes, which will definitely support the effort to continuously enhance food security for our nation," it said.

Incorporated in 1963, DLMI is owned by one of the largest dairy cooperative companies in the world, Royal FrieslandCampina NV, a Dutch multinational dairy company.

Budget 2021 is scheduled to be tabled in Parliament on Nov 6.