IPOH: The government’s decision to maintain the exemption of the Sales and Service Tax (SST) on local fruits has been well-received by both traders and consumers, and it could also encourage an increase in demand for these products.
A survey by Bernama around Tambun here found that local fruits continue to be in high demand despite initial concerns following the implementation of the expanded SST on July 1.
The zero rate of SST on local fruit products also provides relief to traders and consumers who are concerned about potential price increases.
Tambun pomelo trader, Tan Swee Kong, 58, said the SST exemption allows local fruits to be offered at affordable prices, thereby encouraging more consumers to choose local produce as part of their daily diet.
“Although there was initial concern when the SST was announced, we are relieved that the government maintained the exemption on local fruits.
“Currently, Tambun pomelos are available at a promotional price of five for RM55, attracting more buyers as previously they were sold for RM15 to RM20 per fruit,“ he said when met by Bernama here today.
According to Tan, who has inherited the over 60-year-old family business, the exemption of SST also benefits producers as it includes agricultural input goods such as fertilisers and pesticides as well as agricultural machinery.
“We don’t just sell, but also manage our own orchards that produce guavas, starfruits, durians and rambutans. This allows us to control costs and maintain reasonable prices for our customers.
“Demand increases especially during weekends and public holidays. Many customers from outside Perak come to Tambun to get fresh fruits directly from the farm,“ he said.
Meanwhile, trader Law Voon Hing, 56, at the Fresh Fruit Stall (GBBS) on Jalan Tambun, said the tax exemption has a direct impact on market price stability, which indirectly contributes to the balance of supply and demand.
“So far, prices have remained stable, and this is very helpful. In a slowly growing economy, price stability is important to maintain buyer interest.
“The demand for bananas, guavas and papayas is still there. The only challenge we face now is ensuring that the supply is sufficient to meet the demand, which can change according to the season,“ he also said.
He hopes that the zero tax policy on local fruits will be maintained for the long term to stimulate the growth of the agricultural sector and increase its contribution to the national economy.
For consumer Saiful Nawwab, 62, the tax exemption on local fruits is considered a timely and people-friendly move, especially in the increasingly challenging cost of living environment.
He said local fruits, such as bananas, that are now in season have become his family’s choice.
“Fruits are a basic healthy food, and when the prices remain affordable, the people find it easier to adopt a healthy lifestyle.
“Even imported fruits like apples and oranges, which are not subject to SST, help people to include them in their daily diet,“ he added.
