Malaysia exempts sales tax on livestock feed, fertiliser and pesticide inputs to reduce production costs and support affordable food prices
PUTRAJAYA: The zero sales tax rate on inputs sourced from registered manufacturers for the livestock feed, fertiliser and pesticide industries has been described as a windfall for the agricultural sector.
The Agriculture and Food Security Ministry (KPKM) said in a statement today that the initiative had been highly anticipated by industry players, as it could reduce production costs and help ensure agricultural product prices remained affordable in support of the country’s food security.
The ministry expressed full support for Prime Minister Datuk Seri Anwar Ibrahim’s 2026 New Year Message, particularly its emphasis on the food security agenda. The ministry said the agenda aligned with efforts to strengthen governance, improve service delivery efficiency and safeguard the well-being of the people.
KPKM also welcomed the MADANI Government’s commitment to continue implementing 5,000 Agro MADANI Sales this year.
“The programme has proven effective in helping to ease the cost of living by providing the public with access to fresh produce and basic necessities at lower prices than the market,” the statement said.
KPKM reiterated its commitment to continue implementing various strategic initiatives to comprehensively strengthen the country’s food security, in line with the ministry’s policies and direction.
In his New Year’s message yesterday, the Prime Minister announced a sales tax exemption on critical raw materials or inputs used by registered manufacturers, particularly for goods related to the livestock and agriculture sectors, as a measure to help control the prices of basic necessities.
The exemption covers animal feed, fertilisers and pesticides, in line with efforts to ensure the stability of production costs and the country’s food supply chain.
