PUTRAJAYA, June 26 – The government will grant a Sales and Service Tax (SST) exemption for some imported fruit including apples and oranges, following public feedback on local and imported fruit prices, Prime Minister Datuk Seri Anwar Ibrahim said.
He said that though the government encourages the people to choose local fruit such as guava, rambutan, and durian, the SST exemption on apples and oranges is to ensure low-income groups can afford healthy food.
“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.
“Although there is still a small tax on other imported fruit, we are granting an exemption for apples and oranges,” he said at the launch of the Madani City development project here today.
Anwar added that the priority is still local fruit, which are nutrient rich and more seasonally available.
“Avocados are also now 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 (the SST),” he said.
Anwar also said 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 reforms,” he said, adding that details will be announced later.
Previously, Deputy Prime Minister Datuk Seri 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 5 and 10 per cent has to be reviewed.
On June 9, the government said a targeted revision of the sales tax and the expansion of the service tax will take effect July 1.
Meanwhile, Anwar said the Kota Madani development project launched today is meant to be 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 civil servants and local residents’ needs are prioritised.
Minister in the Prime Minister’s Department Datuk Seri Dr Zaliha Mustafa and Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar were also present at the event.
