(Putrajaya, 26th) Prime Minister Datuk Seri Anwar announced that imported oranges and apples are exempted from Sales and Services Tax (SST), and at the same time, the SST threshold will be raised from RM500,000 to RM1,000,000.
He said the Cabinet made the above decision at its meeting on Wednesday.
Anwar, who is also the Finance Minister, announced this during his speech on Thursday morning at the launch of the Kota MADANI urban initiative in Putrajaya.
He said the government understands that many poor and B40 low-income groups buy these imported fruits because their prices are relatively affordable. Therefore, it has been decided to exempt imported apples and oranges from the expanded SST.
Earlier, the government had announced that from July 1, 2025, a 5% sales tax would be imposed on all imported fruits, while locally grown fruits would remain tax-exempt.
Affected imported fruits include temperate fruits such as apples, oranges, grapes, pears, peaches, cherries, as well as imported tropical fruits like bananas, pineapples, rambutans, etc., which are also within the taxable range.
He said the Cabinet made the above decision at its meeting on Wednesday.
Anwar, who is also the Finance Minister, announced this during his speech on Thursday morning at the launch of the Kota MADANI urban initiative in Putrajaya.
He said the government understands that many poor and B40 low-income groups buy these imported fruits because their prices are relatively affordable. Therefore, it has been decided to exempt imported apples and oranges from the expanded SST.
Earlier, the government had announced that from July 1, 2025, a 5% sales tax would be imposed on all imported fruits, while locally grown fruits would remain tax-exempt.
Affected imported fruits include temperate fruits such as apples, oranges, grapes, pears, peaches, cherries, as well as imported tropical fruits like bananas, pineapples, rambutans, etc., which are also within the taxable range.
News Background:
Zahid Previously Revealed Review of Certain Imported Goods
Zahid Previously Revealed Review of Certain Imported Goods
Last Friday (20th), Deputy Prime Minister Datuk Seri Dr. Ahmad Zahid revealed that the government would review the policy and implementation of levying Sales and Services Tax (SST) on specific imported goods such as apples and citrus.
He said that since these fruits are not domestically produced and are entirely imported, it is necessary to reconsider before the imposition of the 5%-10% SST.
"I believe there is a need for the rationale behind SST on certain goods, and I think some items classified under the 5%-10% tax bracket should be subject to adjustments."
On the 9th of this month, the government announced a major reform of the SST system, which will come into effect on July 1, expanding the taxable scope for non-essential goods to a 5% or 10% tax rate while keeping the rate for essential goods unchanged.
At the same time, the service tax scope also expands to six new services: leasing, construction, finance, private healthcare, education, and beauty. However, the move to tax imported fruits under SST has been deemed unreasonable as it would affect low-income consumers and has sparked criticism.
He said that since these fruits are not domestically produced and are entirely imported, it is necessary to reconsider before the imposition of the 5%-10% SST.
"I believe there is a need for the rationale behind SST on certain goods, and I think some items classified under the 5%-10% tax bracket should be subject to adjustments."
On the 9th of this month, the government announced a major reform of the SST system, which will come into effect on July 1, expanding the taxable scope for non-essential goods to a 5% or 10% tax rate while keeping the rate for essential goods unchanged.
At the same time, the service tax scope also expands to six new services: leasing, construction, finance, private healthcare, education, and beauty. However, the move to tax imported fruits under SST has been deemed unreasonable as it would affect low-income consumers and has sparked criticism.