Imported apples, oranges exempted from expanded SST
PUTRAJAYA : The government has decided to exempt imported apples and oranges from the expanded sales and service tax (SST).
Prime Minister Anwar Ibrahim said the government acknowledged that many from among the poor and B40 income group would buy these imported fruits as they were affordable.
Anwar, who is also the finance minister, said the Cabinet had discussed the matter yesterday, although he was of the view that there was no need to consume imported fruits.
'But I saw that there is a lot of unease. Many of the poor and B40 still eat imported apples and oranges because it's cheap.
'Usually when a finance minister makes a decision, he won't budge. But I mentioned to my Cabinet colleagues that it's actually reasonable (to exempt imported apples and oranges from the expanded SST),' he said at the launch of the Madani City project here.
The prime minister also quipped that the demand for apples was due to the saying 'an apple a day keeps the doctor away'.
'Because many have complained, yesterday we agreed to give the exemption. Imported fruits will be charged a small percentage of sales tax, but we will exempt apples and oranges.'
When asked by reporters later if the exemption would be extended to other imported fruits, Anwar said: 'No, the feedback we received involved apples and oranges.'
The finance ministry previously said that the expansion of the SST from July 1, including a 5% rate on imported fruits, was strategically aimed at bolstering local agricultural demand and strengthening food security.
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