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Imported fruits are among a few products that are going to be subject to the government’s targeted Sales and Service Tax (SST) that is coming into effect this 1 July.
Malaysians purchasing apples, oranges, berries, avocados, and any other fruit that is imported to Malaysia will be subject to a five percent tax.
However, the government has changed its mind and opted to exempt apples and oranges specifically, after taking into account concerns raised by the public, especially from lower-income groups.
Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, said the matter was brought up in a Cabinet discussion recently, Malay Mail reported.
“Since there are ongoing public concerns on the matter, we (the Cabinet) have agreed to provide some relaxations in that imported fruits are still taxed but exemptions given to apples and oranges,” he said in his speech at the Kota Madani groundbreaking ceremony today (26 June).
Rakyat concerned about cost of living once expanded SST hits
Understandably, Malaysians are worried the new SST scheme will impact their cost of living (while most wages remain stagnant). Some are also worried that unscrupulous businesses will pass on the cost to consumers.
The good news is, essential daily goods will not be taxed. This includes chicken, beef, mutton, fish, prawns, squid, local vegetables and fruits, rice, barley, oats, wheat, flour, canned sardines, sugar, salt, white bread, pasta, vermicelli, noodles, instant noodles, milk, cooking oil, medicine, medical devices, books, journals, newspapers and pet food.
However, some non-essential goods will be taxed at 5% and these include king crab, salmon, cod, truffle mushrooms, imported fruits, essential oils, silk fabrics, and industrial machinery.
Meanwhile, premium items like racing bicycles and antique hand-painted artworks will be taxed at 10%. The rest of the items affected by the revised SST can be found here.
READ MORE: “We Don’t Earn Dubai-Level Money” Many Unhappy With Revised SST That’s Starting On 1 July
Mydin boss said the SST on apples and oranges “does not make sense”
Earlier, Ameer Ali Mydin – the managing director of Malaysia’s leading Halal wholesaler and retailer – spoke up about the government’s decision to tax imported fruits.
He considered the decision as something that “does not make sense”, noting that the fruits in question are also consumed by low-income groups.
Ameer also highlighted the importance of fruits like apples and oranges as part of a healthy diet, giving the example of such fruits being the gift of choice when visiting a patient at a hospital.
Speaking on bananas (which will be also be subject to SST for imported ones), he acknowledged arguments about them being produced locally, but said current production is still insufficient to meet demands, which is why they need to be supplemented with imports.
READ MORE: “It Doesn’t Make Sense” – Mydin Boss On Expanded SST On Imported Fruits
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