KUALA LUMPUR (June 26): The government intends to exempt apples and oranges from the sales and service tax (SST), according to news reports citing Prime Minister Datuk Seri Anwar Ibrahim. This move comes after public feedback concerning the prices of both local and imported fruits.
However, it remains unclear at this juncture whether the exemption will extend to other imported fruits or is confined solely to apples and oranges, due to conflicting reports.
According to Bernama, Anwar said the tax exemption on these two main imported fruits is being implemented to ensure that low-income groups can still afford healthy food options.
“Yesterday (Wednesday, June 25), during the Cabinet meeting, we heard the concerns of the people — some still want to eat apples and oranges because they’re more affordable.
“So, although there is still a small tax on other imported fruits, we are granting an exemption for apples and oranges,” he was quoted as saying at the launch of the Kota Madani project here on Thursday (June 26).
The priority remains on local fruits, which are rich in nutrients and more easily available during their seasons, said Anwar.
“Avocados are now also being cultivated in Sabah. We have many local fruits — langsat, duku, rambutan, and durian. But I have noticed that the B40 (low-income) group still consumes imported apples and oranges, so we are reconsidering,” he said.
Meanwhile, the government has agreed to raise the income threshold for small enterprises and micro traders from RM500,000 to RM1 million.
“We are raising it because half a million is too low. This move is aimed at encouraging public support for the government’s reform efforts,” Anwar said, adding further details would be announced later.
The government announced on June 9 that the expanded sales and service tax would take effect on July 1, 2025, which will see a sales tax of 5%-10% imposed on selected and non-essential goods. The service tax would also be expanded to include rental or leasing, construction, finance, private healthcare, education and beauty services.
Two days later, it clarified that the SST expansion would also see all imported fruits be levied with a 5% sales tax, including tropical varieties such as bananas, pineapples, rambutans, longan, lychees, langsat, jackfruit and star fruits. At the time, it said only fruits grown locally would be exempted.
To receive CEO Morning Brief please click here.