MOF clarifies: No SST on local fruits, cooking oil, raw sugar
KUALA LUMPUR: Local fruits and cooking oil will not be taxed under the expanded Sales and Service Tax (SST) taking effect on July 1, 2025, a Ministry of Finance (MOF) spokesman has confirmed.
Addressing public confusion over the gazetted SST list, the spokesman clarified that the 5 per cent sales tax only applies to imported fruits, not those grown locally.
"If the fruits are imported, they will be subject to the 5 per cent sales tax. Locally grown fruits are exempted from any sales tax.
"In addition, selected foods that are imported, like rice, wheat, sugar, salt and meat, are exempt, as they are considered basic essentials. "Locally manufactured and imported palm oil for cooking oil is also exempted," the spokesman told Business Times.
The clarification comes amid widespread online confusion after a gazetted list of taxable goods appeared to contradict earlier government statements by including items such as bananas, papayas, durians, dried longans, cooking oil, raw sugar and salt – previously identified as tax-exempt essentials.
Questions were raised over the lack of clear distinction in the gazette between imported and locally sourced goods, prompting concerns about how the rules would be enforced.
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