Latest news with #localFruits
South China Morning Post
17 hours ago
- Business
- South China Morning Post
Malaysia's Anwar relents, exempts imported apples and oranges from fresh tax after backlash
Imported apples and oranges will be exempted from the revised sales and services tax (SST), responding to public concerns, Malaysian Prime Minister Anwar Ibrahim announced on Thursday. He stated that while it is preferable to consume local fruits such as papayas and bananas, the cabinet decided on Wednesday to exempt these popular fruits. Anwar conveyed this decision to the media after launching the Kota Madani project in Putrajaya's Precinct 19 on Thursday. 'There will not be exemptions for other imported fruits as we have many local fruits to choose from. However, we compromise with apples and oranges as there have been many requests from the public.' 'The sales value threshold will now be increased from half a million to 1 million ringgit (US$236,634). There will be further announcements and clarification on this,' Anwar added. In his speech earlier, he advised that it is better to eat a local banana a day rather than apples.
Malay Mail
11-06-2025
- Business
- Malay Mail
Sales tax clarification: Local fruits exempt, imported ones subject to tax, says MoF
KUALA LUMPUR, June 11 — The Ministry of Finance (MOF) has clarified that agricultural produce grown in Malaysia are not subject to sales tax under the expanded Sales and Service Tax (SST). The ministry noted that there have been news reports that questioned the application of sales tax on local fruits. 'This arises from the potential confusion of tropical fruits being included in the sales tax gazette order, which itemises the items subject to 5.0 per cent sales tax. Under the expanded sales and services tax that will take effect on July 1, 2025, the sales tax is levied on goods manufactured locally and on imported goods,' it said in a statement. The MOF said agricultural produce grown in Malaysia are not manufactured, hence they are not subject to sales tax. 'As such, the MOF wishes to confirm that fruits locally grown in Malaysia are exempted from sales tax. However, if the fruits are imported, then they would be subject to sales tax. This includes tropical fruits such as bananas, pineapple and rambutans,' it added. The MOF also addressed the concern of companies that there is insufficient time to implement the service tax by July 1, 2025. 'For companies not currently registered under SST but providing one of the newly taxable services, such as rental, in July 2025, they would need to first establish whether they have reached the revenue threshold of RM500,000 for rental within twelve months. 'If they have reached the revenue threshold in July, then the company will need to register by August and only begin to charge service tax on their services beginning Sept 1, 2025, which is more than two months from now,' said the ministry. In addition, the MOF added that in 'appreciating the need to provide time for affected companies to understand how the SST revisions may apply to them,' the government will provide a grace period until December 2025. 'The government will not impose penalties on companies that genuinely have made the effort to comply with the newly revised SST,' it said. — Bernama
Malay Mail
11-06-2025
- Business
- Malay Mail
No tax on local fruits under expanded SST, Finance Ministry clarifies
KUALA LUMPUR, June 11 — The Ministry of Finance (MOF) has clarified that agricultural produce grown in Malaysia are not subject to sales tax under the expanded Sales and Service Tax (SST). The ministry noted that there have been news reports that questioned the application of sales tax on local fruits. 'This arises from the potential confusion of tropical fruits being included in the sales tax gazette order, which itemises the items subject to 5.0 per cent sales tax. Under the expanded sales and services tax that will take effect on July 1, 2025, the sales tax is levied on goods manufactured locally and on imported goods,' it said in a statement. The MOF said agricultural produce grown in Malaysia are not manufactured, hence they are not subject to sales tax. 'As such, the MOF wishes to confirm that fruits locally grown in Malaysia are exempted from sales tax. However, if the fruits are imported, then they would be subject to sales tax. This includes tropical fruits such as bananas, pineapple and rambutans,' it added. The MOF also addressed the concern of companies that there is insufficient time to implement the service tax by July 1, 2025. 'For companies not currently registered under SST but providing one of the newly taxable services, such as rental, in July 2025, they would need to first establish whether they have reached the revenue threshold of RM500,000 for rental within twelve months. 'If they have reached the revenue threshold in July, then the company will need to register by August and only begin to charge service tax on their services beginning Sept 1, 2025, which is more than two months from now,' said the ministry. In addition, the MOF added that in 'appreciating the need to provide time for affected companies to understand how the SST revisions may apply to them,' the government will provide a grace period until December 2025. 'The government will not impose penalties on companies that genuinely have made the effort to comply with the newly revised SST,' it said. — Bernama
