Govt to review SST expansion for imported fruits, says Zahid
Deputy prime minister Ahmad Zahid Hamidi said even though the SST is to protect the local fruit industry, not all fruits can be produced in Malaysia. (Envato Elements pic)
PETALING JAYA : The government will review the revision and expansion of the sales and service tax for imported fruits within the next month, following concerns raised by industry players.
Deputy prime minister Ahmad Zahid Hamidi said the government had taken note of the various views put forth and would reconsider the list of taxable items.
He said the matter would be brought to the Cabinet before a decision is made, taking into account the needs of lower-income citizens.
'Our country does not produce apples or mandarin oranges. Even though the SST is to protect the local fruit industry, we must understand that not all fruits can be produced here.
'I believe an adjustment will be made to the list of goods taxable by 5-10% under the SST. I am certain the finance and economy ministries are thoroughly studying the matter,' Utusan Malaysia reported him as saying.
He emphasised that the matter would still need the consideration of the Cabinet.
Previously, the finance ministry said the expansion of the SST from July 1, including a 5% rate on imported fruits, was strategically aimed at bolstering local agricultural demand and strengthening food security.
Treasury secretary-general Johan Mahmood Merican outlined the government's deliberate approach to differentiate between essential and non-essential goods under the expanded tax net.
He said the 5% SST on imported fruits served as a strategic nudge to consumers, encouraging the consumption of local alternatives and strengthening the nation's food security.
'Optional goods with alternatives are subject to 5% SST, but locally produced fruits are not subject to the sales tax,' said Johan.
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