Zahid says Cabinet to rethink SST on imported fruits like apples, oranges, to avoid weighing down low wage earners
BANGI, June 19 — The government will review the implementation of the revised and expanded Sales and Services Tax (SST) on several selected imported goods, including fruits such as apples and mandarin oranges, Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi said today.
He noted that the fruits are not produced locally but are fully imported, and therefore the tax should be reconsidered before imposing a rate of between five and 10 per cent.
'I believe it is reasonable for (the new SST rate on certain goods) to be reviewed and I think there will be an adjustment for certain materials to be categorised for tax at five to 10 per cent.
'(But) don't take that conclusively,' he told reporters after officiating the Community Development Department (Kemas) Teachers' Day Celebration here.
Earlier, Mydin Holdings Bhd managing director Datuk Ameer Ali Mydin Mohamed described the move to impose SST on imported fruit as unreasonable, saying it would also affect low-income consumers.
Responding to this, Ahmad Zahid said the views raised by Ameer Ali should be brought to the Cabinet meeting, as the issue concerns public access to imported fruits.
'The revenue from fruit tax to the country is not that high. So if SST is imposed, the price will increase.
'I know the purpose (of imposing SST on imported fruits) is to protect local fruits but we do not produce apples and mandarin oranges. I am sure the Ministry of Finance and the Ministry of Economy are also looking into the matter,' he said.
On June 9, the government announced a targeted SST review set to take effect from July 1, 2025.
The sales tax rate will remain unchanged for essential goods, while a five or 10 per cent rate will be applied to non-essential or discretionary goods.
The scope of service tax has also been expanded to cover six new categories: rental or leasing, construction, finance, private healthcare, education, and beauty. — Bernama
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