MOF justifies SST on imported fruits, cites sufficient local alternatives
The Finance Ministry has defended its decision to impose a five percent Sales and Service Tax (SST) on imported fruits, arguing that Malaysia already produces sufficient local alternatives that remain exempt from the levy.
In an exclusive interview with Malaysiakini, Finance Ministry Treasury secretary-general Johan Mahmood Merican emphasised that whilst basic goods such as chicken, vegetables, rice, flour, bread, and cooking oil continue to enjoy zero-percent taxation, imported fruits are considered...
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THE Finance Ministry of Malaysia defends its decision to impose a 5% Sales and Service Tax (SST) on imported fruits, stating that locally produced fruits, such as bananas, pineapples, and melons from Terengganu and Kedah, are sufficient alternatives, remaining tax-exempt. In an interview with Malaysiakini, treasury secretary-general Johan Mahmood Merican explained that basic goods like chicken, vegetables, rice, flour, bread, and cooking oil are also zero-rated for SST, as they are widely consumed across income levels. According to him, there was a sufficient diversity of locally grown fruits that are available in supply, that is zero percent taxed. He claimed imported fruits are considered 'discretionary expenditures' with viable local substitutes, justifying the tax. Johan further added that the exemption would encourage the consumption of local produce. The domestic trade and cost of living ministry also actively monitors prices to prevent profiteering, with increased enforcement activities and the provision of affordable alternatives through Jualan Rahmah and Agro Madani. —June 14, 2025 Main image: Wellcure
