BANGI: The government will review the implementation of the revision and expansion of the Sales and Services Tax (SST) on several selected imported goods including fruits such as apples and mandarin oranges, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
He said the fruits are not produced locally but are instead imported entirely from foreign countries, hence it should be reconsidered before imposing SST of between five and 10 per cent.
“I believe it is reasonable for (the new SST rate on certain goods) to be reviewed and I think there will be an adjustment for certain materials to be categorised for tax at five to 10 per cent.
“(But) don’t take that conclusively,“ he told reporters after officiating the Community Development Department (KEMAS) Teachers’ Day Celebration, here today.
Earlier, Mydin Holdings Bhd managing director Datuk Ameer Ali Mydin Mohamed described the move to impose SST on imported fruit as unreasonable because it also affects low-income consumers.
Commenting further, Ahmad Zahid said the views put forward by Ameer Ali should be brought to the Cabinet meeting as it touches on the people’s needs for imported fruits.
“The revenue from fruit tax to the country is not that high. So if SST is imposed, the price will increase.
“I know the purpose (of imposing SST on imported fruits) is to protect local fruits but we do not produce apples and mandarin oranges. I am sure the Ministry of Finance and the Ministry of Economy are also looking into the matter,” he said.
On June 9, the government announced a targeted review of the SST rate which will take effect from July 1, 2025. The sales tax rate will remain the same for essential goods, while a rate of five or 10 per cent will be imposed on non-essential or discretionary goods.
At the same time, the scope of service tax has also been expanded to cover six new services such as rental or leasing, construction, finance, private healthcare, education and beauty.
