Except For Apples And Oranges, Other Imported Fruits Taxable Under Expanded SST - Treasury Sec-gen

KUALA LUMPUR, June 27 (Bernama) -- Apples and oranges are exempted from the expanded Sales and Service Tax (SST) as these fruits cannot be cultivated in Malaysia and are widely consumed by the public, says Treasury secretary-general Datuk Johan Mahmood Merican.

He said apples and oranges hold a significant place on dining tables during festive seasons such as Chinese New Year and Hari Raya, reflecting their role as daily essentials despite being imported.

“These fruits cannot be produced locally due to our climate, but they are part of daily consumption for many Malaysians,” he said during a Finance Ministry TikTok Live session titled “SST Naik, Semua Harga Pun Naik?” yesterday. 

Johan explained that while certain imported fruits such as strawberries, blueberries and avocados will remain taxable under the expanded SST, the exemption for apples and oranges is intended to ease the financial burden on consumers, given their high consumption among Malaysians.

“We want to encourage the consumption of local fruits, but at the same time, we recognise that apples and oranges are important in people’s daily lives,” he said.

He added that local fruits, including the widely consumed ‘pisang mas’, are not subject to SST, ensuring price stability for consumers. 

He said 90 per cent of bananas consumed in Malaysia are locally sourced, while only 10 per cent are imported.

“Supporting local produce helps the economy and ensures affordability,” he said, noting that the price of popular snacks like ‘pisang goreng’ will not be affected under the expanded tax scope unless imported bananas are used.

Meanwhile, Johan said the government will maintain a zero tax rate on gold bars and jewellery, acknowledging their cultural importance and role in the local economy.

"Gold is often used within communities for savings, as collateral for loans, and as blessings during weddings and childbirth.

“Therefore, we have decided to maintain a zero tax rate due to its importance in the community and its role in the economy,” he said.

Johan said the government aims to generate an additional RM10 billion in revenue from SST collections.

“The government has opted to retain the SST instead of reintroducing the Goods and Services Tax (GST), as SST imposes a lighter burden on consumers,” he said. 

-- BERNAMA