Don't tax apples, oranges and pears

Malaysian favourites: Fruit trader Chong Kau Moi, 72, arranging fresh fruits at Chai Leng Park 'Wai Sek Kai' food court in Perai, in this file photo.
PETALING JAYA: Common imported fruits such as apples, oranges and pears are everyday staples for Malaysians and should not be subjected to a 5% sales tax, says Datuk Ameer Ali Mydin.
The Mydin Mohamed Holdings Bhd managing director said Malay­sia does not produce enough fruit to meet local demand, making imports essential to ensure a consistent supply.
'Fruits are a basic necessity, just like protein. While local varie­ties such as watermelon and bana­nas are available year-round, supply is insufficient.
'Seasonal fruits like rambutan, mangosteen and langsat are not always in season, so imported fruit is necessary. Otherwise, are we expected to survive on just watermelon and bananas?' he said when contacted.
'Our climate doesn't support the cultivation of all fruits, such as apples, oranges and pears. Even strawberries are challenging to grow due to limited land in places like Cameron Highlands.
'On top of that, efforts to cultivate premium varieties – like Haru­manis mangoes – only add to costs.'
Under the expanded SST regime slated to be enforced on July 1, a 5% tax will be imposed on all imported fruits, while locally-grown produce will remain exempt.
For example, strawberries grown in Cameron Highlands will not be taxed, but imported ones will be.
Ameer expressed concern over the lack of clarity in the expanded tax as the government has yet to release a list of what will be exempted.
'The government has yet to release an exemption list, so for now, we have to assume all imported fruits will be taxed. The Prime Minister often refers to avocados, but not everyone eats them.
'We need transparency about what this tax actually covers. Labelling it a luxury tax is mislea­ding and risks widening the gap between income groups,' he said.
He added that while the policy may not entirely deprive the B40 group of fruits, it will certainly make them less affordable.
'It's misleading to claim that essential goods for the B40 are exempt when basic fruits are included. The government should be honest, this is clearly about revenue generation,' he said.
Ameer added that the impact of the expanded SST on the prices of imported food will be compounded by other costs such as a 30% hike in cargo handling fees in Port Klang which will also begin in July.
Meanwhile, MCA president Datuk Seri Dr Wee Ka Siong echo­ed Ameer's concerns, saying that the sales tax should not apply to fruits such as mangoes, apples, oranges and dates.
'The reason is simple – the B40 group also consumes these fruits. Local production cannot meet the high demand for fruits,' he said.
For instance, Malaysia only produces 19% of all mangoes eaten in the country while the rest are imported, Dr Wee said.
'All of these are far more affor­dable than avocados,' he said in a Facebook post yesterday.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

BusinessToday

42 minutes ago

• BusinessToday

Malaysia To Finalise E-Commerce Law Review By August, Minister Says

Malaysia's review of its e-commerce legislation is entering its final phase and is expected to be completed by August, paving the way for more robust consumer protection and a modernised regulatory framework, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said. Launched in April 2023, the comprehensive review targets key laws such as the Consumer Protection Act 1999 and the Electronic Commerce Act 2006, aiming to make them more responsive to today's digital landscape. 'Our goal is to finalise the review by year-end, including obtaining Cabinet approval on whether to amend existing laws or introduce a new legal framework that is comprehensive and future-ready,' said Armizan. The initiative also benchmarks Malaysian legislation against international practices and addresses current gaps, especially the lack of direct regulation for platform operators and online sellers. While a licensing regime has not yet been decided, Armizan stressed the importance of balancing regulation with business growth. 'We want to ensure that any legal reforms support, not hinder, the continued expansion of Malaysia's e-commerce sector,' he added. A townhall session with industry stakeholders will be held on July 17 to gather further input. To date, 63 public and private sector entities have participated in consultations, supported by nationwide surveys. The urgency of the review is underscored by the sector's rapid growth, with Malaysia's e-commerce revenue projected to hit RM1.65 trillion in 2025, reinforcing its importance as a key economic driver. Related

New Straits Times

3 hours ago

• New Straits Times

Malaysia eyes stronger trade ties with Uzbekistan

TASHKENT: Malaysia is optimistic about a potential increase in bilateral trade with Uzbekistan, as both countries work to deepen cooperation in new areas such as halal certification, Islamic finance, tourism, and green technology. In an interview with Bernama and RTM, here, Malaysian Ambassador to Uzbekistan Ilham Tuah Illias acknowledged a recent drop in trade volume, mainly due to import tax on palm oil. However, he expressed confidence in a potential turnaround. "We are hopeful that trade will pick up, if both governments can agree to waive or continue waiving the (import) tax on Malaysian palm oil. This would enable Uzbek retailers here to resume sourcing their palm oil supply from Malaysia," he said. In 2024, Malaysia–Uzbekistan trade reached RM369.8 million (US$80.9 million), making Uzbekistan Malaysia's second-largest trading partner in Central Asia. The trade balance was in Malaysia's favour at RM360.3 million (US$78.9 million). From January to April 2025, bilateral trade between both countries reached RM106 million (US$25 million). Major exports from Malaysia to Uzbekistan include palm oil, coffee, palm-based oleochemical, margarine and shortening, processed food and coconut oil, while imports from Uzbekistan comprise mainly fertilisers, fruits and textiles. Ilham Tuah said the 5.0 per cent tax on Malaysian palm oil is being reconsidered by Uzbek authorities. A continued exemption could significantly boost Malaysia's exports. "We hope this move will encourage Uzbek buyers to continue to source their supply from Malaysia. Discussions between the relevant authorities in both countries will be essential in finding a mutually beneficial solution," he added. The ambassador also highlighted the importance of raising public awareness in Uzbekistan about the health benefits of palm oil. "We must continue educating the Uzbek people about the nutritional value of palm oil and counter the negative narratives promoted by certain parties," he added. On the tourism front, Ilham Tuah said that over 15,000 Uzbek tourists visited Malaysia last year—a significant increase from previous years, driven by enhanced air connectivity, including direct flights by Batik Air and Uzbekistan Airways. "This improved connectivity benefits not only tourists but also students from Uzbekistan. Many are drawn to Malaysia's beaches, as Uzbekistan is a landlocked country," he explained. He also noted a growing interest among Malaysian travellers in Uzbekistan, particularly for spiritual tourism. "Many Malaysians visit Uzbekistan particularly for spiritual reasons. They love to explore the Imam Al Bukhari Mausoleum, which is currently under renovation. Once completed, it is expected to become a favourite destination for Malaysians," he added. He said there is strong interest in Malaysia's halal certification in Uzbekistan, adding that the Malaysian Islamic Development Department (Jakim) has signed an MoU with the relevant Uzbek authorities to strengthen cooperation. "This collaboration will help local products meet Malaysian halal standards, potentially opening access to broader markets that recognise our certification," he said. To facilitate smoother trade and investment, both countries are currently exploring the possibility of establishing a Preferential Trade Agreement (PTA). Ilham Tuah said with such a framework, Malaysia could send semi-finished goods for final processing in Uzbekistan, which has access to markets in the European Union and Eurasia. "It's a win-win for both sides. Preferential trade agreement between Malaysia and Uzbekistan is something we are actively considering. So the relevant agencies of both countries should meet up to discuss and explore this further," he added. Ilham Tuah also noted the growing demand in halal consumer goods and Muslimah fashion. "Muslimah fashion is making a strong comeback here. So I encourage Malaysian women entrepreneurs to engage with their counterparts here. There is huge demand here for Muslimah fashion, cosmetics and halal products," he said.

The Star

3 hours ago

• The Star

The moral case for GST

The road to a broad-based consumption tax in Malaysia has been long and tortuous, stretching back more than a decade before its brief life under Barisan Nasional (BN). In December 2009, the then-government first introduced the Goods and Services Tax (GST) Bill in Parliament, pledging that a uniform, 6% levy would replace the patchwork of Sales and Service Taxes (SST) then ranging from 5 to 15%. Despite initial plans to roll out GST by late 2011, fierce public resistance, fueled by fears of rising living costs and concerns about insufficient safeguards for low-income households, led to repeated postponements.