Fruit SST exemption a step in the right direction, but broader reforms needed, say consumer and health groups

New Straits Times

7 hours ago

KUALA LUMPUR: Consumer and health groups say while the exemption of apples and oranges from the Sales and Service Tax (SST) is a positive move, it falls short of tackling deeper issues of food affordability, nutrition and profiteering.
Federation of Malaysian Consumers Associations (Fomca) chief executive officer Datuk Dr Saravanan Thambirajah said the measure was too narrow and lacked a coherent food policy direction.
"While the exemption of apples and oranges from SST may offer some short-term relief, Fomca does not view this move as fully adequate or genuinely welcome. In principle, food — being a basic human need — should never have been subjected to SST in the first place," he said.
Malaysia Consumers Movement deputy president Beninder Johl said the taxation of fruits in any form was misguided.
"We don't support taxing fruits at all. Imported fruits aren't only consumed by the rich — middle-income families buy them, too. We should be taxing unhealthy foods instead, not nutritious ones."
He also pointed out that local fruits were not necessarily more affordable.
"If we force a shift away from imported fruits, demand for local fruits could rise and push prices up further."
He said any expansion of SST must be backed by targeted subsidies, cash aid and support for local agriculture.
Consumers Association of Penang president Mohideen Abdul Kadeer said while SST exemptions for basic items were welcome, enforcement must be tightened to prevent price manipulation.
"We support the imposition of SST on non-essential items. But any cost increase may be passed on to consumers."
He added that Malaysia's food security was under threat due to over-reliance on imports.
"We are even importing 'local' varieties — once abundant in our orchards — from Thailand. Fruits like mangoes, guavas and melons are now being brought in from overseas. The government must urgently invest in domestic fruit cultivation."
He urged the Domestic Trade and Cost of Living Ministry to ramp up inspections and price transparency to prevent profiteering.
Meanwhile, the Malaysian Dietitians' Association supported the exemption as a strategic measure to help low-income families, especially those managing chronic illnesses.
"This tax exemption helps these families maintain access to nutritious food without additional financial strain," said its president, Dr Barakatun Nisak Mohd Yusof.
She said apples were a commonly preferred fruit among the B40 group due to their shelf life and affordability, particularly for those living with diabetes and high blood pressure.
"Currently, 95 per cent of Malaysians do not meet the recommended daily intake of fruits and vegetables, so even small policies like this can make a meaningful difference in public health."
Dr Barakatun Nisak added that affordability alone was not enough.
"We need to make healthy food not just affordable but also reachable and realistic. Policy and ground-level action must work hand-in-hand to support real behaviour change."
Earlier, Prime Minister Datuk Seri Anwar Ibrahim announced that imported apples and oranges would be exempt from SST following a cabinet decision made on June 25.