Finance ministry justifies SST on imported fruits citing local alternatives
THE Finance Ministry of Malaysia defends its decision to impose a 5% Sales and Service Tax (SST) on imported fruits, stating that locally produced fruits, such as bananas, pineapples, and melons from Terengganu and Kedah, are sufficient alternatives, remaining tax-exempt.
In an interview with Malaysiakini, treasury secretary-general Johan Mahmood Merican explained that basic goods like chicken, vegetables, rice, flour, bread, and cooking oil are also zero-rated for SST, as they are widely consumed across income levels.
According to him, there was a sufficient diversity of locally grown fruits that are available in supply, that is zero percent taxed.
He claimed imported fruits are considered 'discretionary expenditures' with viable local substitutes, justifying the tax.
Johan further added that the exemption would encourage the consumption of local produce.
The domestic trade and cost of living ministry also actively monitors prices to prevent profiteering, with increased enforcement activities and the provision of affordable alternatives through Jualan Rahmah and Agro Madani. —June 14, 2025
Main image: Wellcure
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