Apples, Oranges To Be Exempted From SST - PM Anwar

PUTRAJAYA, June 26 (Bernama) — The government will grant a Sales and Service Tax (SST) exemption for certain imported fruits, including apples and oranges, following public feedback regarding prices of local and imported fruits, Prime Minister Datuk Seri Anwar Ibrahim said.

According to him, although the government wants to encourage the public to prioritise local fruits such as guava, rambutan, and durian, 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, 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 said at the launch of the Kota MADANI project here today.

Anwar added that priority remains on local fruits, which are rich in nutrients and more easily available during their seasons.

“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.

Anwar also said that 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," he said.

Anwar added that further details will be announced later.

Previously, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the government would reconsider the SST expansion on certain imported commodities, including fruits like apples and oranges.

He said since these fruits are fully imported, the proposal to impose an SST of between five and 10 per cent has to be reviewed.

On June 9, the government said a targeted revision of the Sales Tax rate and expansion of the Service Tax scope will be effective July 1, 2025.

The Kota MADANI development project, launched today, is expected to become a model for urban development based on inclusive, sustainable, and people-friendly values, with the federal government working closely with state governments and local authorities to ensure that civil servants and local residents' needs are prioritised.

Minister in the Prime Minister’s Department Datuk Seri Dr Zaliha Mustafa and the government's chief secretary Tan Sri Shamsul Azri Abu Bakar were also present at the event.

— BERNAMA