SST on imported goods up for review
BANGI: The expansion of the Sales and Services Tax (SST) on several imported goods, including fruits such as apple and mandarin oranges will be reviewed, says Datuk Seri Dr Ahmad Zahid Hamidi.
The Deputy Prime Minister said the decision to impose the SST of between 5% and 10% on fruits not produced locally should be considered.
'I believe it is reasonable for (the new SST rate on certain goods) to be reviewed and I think there will be an adjustment on certain materials to be categorised as taxable.
'(But) don't take that conclusively,' he said after officiating the Community Development Department (Kemas) Teachers Day celebration yesterday.
Earlier, Mydin Holdings Bhd managing director Datuk Ameer Ali Mydin Mohamed described the move to impose SST on imported fruit as unreasonable because it also affects low-income consumers.
Ahmad Zahid said the views put forward by Ameer Ali should be brought to the Cabinet meeting as it touches on the people's needs for imported fruits.
'The revenue from fruit tax to the country is not that high. If SST is imposed, the price will increase,' Ahmad Zahid said, Bernama reported.
'I know the purpose (of imposing SST on imported fruits) is to protect local fruits but we do not produce apples and mandarin oranges. I am sure the Finance Ministry and the Economy Ministry are also looking into the matter,' he added
On June 9, the government announced a targeted review of the SST rate which will take effect from July 1.
The sales tax rate will remain the same for essential goods, while a rate of 5% or 10% will be imposed on non-essential or discretionary goods.
The scope of service tax has also been expanded to cover six new services such as rental or leasing, construction, finance, private healthcare, education and beauty.
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