“It Doesn’t Make Sense” – Mydin Boss On Expanded SST On Imported Fruits
The Mydin managing director says fruits such as apples, oranges and bananas are considered basic foods among the Malaysian people.
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Ameer Ali Mydin, the managing director of Malaysia’s foremost halal wholesaler and retailer, has come forward with a comment on the expanded sales and service tax (SST) that is coming into effect on 1 July.
He considers the government’s decision to tax imported fruits as something that “does not make sense”.
The renowned businessman said that, contrary to what people think, some of the imported fruits are also used by those in the low-income bracket, MalaysiaKini reported.
Apples, oranges, bananas are part of a healthy diet
According to Ameer, fruits such as apples and oranges, as well as bananas are often associated with a healthy diet. He illustrated how such agricultural products are important to society, giving the example of such fruits being the gift of choice when visiting a patient at a hospital.
“I do not agree and it does not make sense that basic fruits such as apples, oranges, bananas, and others will be subjected to SST. These are all B40 (group) foods,” he said.
Although there are arguments claiming that such fruits are produced locally, Ameer said current production in Malaysia is still insufficient and therefore needs to be imported.
“Bananas, for example, is locally produced but the supply is insufficient. A large portion of it is imported. Just like apples and oranges, bananas are considered as basic foods for the rakyat, particularly those in the B40 group,” he said, adding that even though fruits such as oranges and apples are imported, their prices are not too expensive and are still popular choices of fruit among low-income groups.
Ameer: The government needs to make a more careful assessment of the SST
Earlier, the government announced the expanded SST on various categories of imported fruits, and the decision was met with mixed reactions among the public, including concerns that it might affect the cost of living
The proposal was made during the Budget 2025 tabling on 18 October, 2024, by Prime Minister cum Finance Minster Datuk Seri Anwar Ibrahim. He promised that the new SST scheme willbe progressive and assured that it will not burden Malaysian citizens.
Anwar said then, that the SST will be imposed on non-essential and premium imported produce such as avocados and salmon.
More recently, he defended the expanded SST by stating the step taken is aimed at taxing the rich, and only affects certain segments.
Some users on social media have commented that the government’s SST implementation on imported fruits show a clear disconnection with the people. As Ameer mentioned, fruits like apples, bananas, and oranges are actually more commonly consumed by Malaysians than the government thinks.
According to Ameer, the government must make a more thorough assessment before implementing the expanded SST.
He gave an example of separating fruits that are categorised as “the people’s fruits” from luxury fruits that are enjoyed by a handful of people.
Ameer also warned that the implementation of SST on such fruits will only cause their prices to soar and will ultimately put pressure on consumers.
What else is being taxed (and not taxed) in the new SST revision?
It seems that non-essential goods such as king crab, salmon, cod, truffle mushrooms, imported fruits (apples, oranges, grapes, berries, avocados etc.), essential oils, silk fabrics, and industrial machinery will get a 5% tax.
Meanwhile, premium items like racing bicycles and antique hand-painted artworks will be taxed at 10%. The rest of the items affected by the revised SST can be found here.
The good news is essential daily goods will not be taxed (taxed at 0%). These goods include chicken, beef, mutton, fish, prawns, squid, local vegetables and fruits, rice, barley, oats, wheat, flour, canned sardines, sugar, salt, white bread, pasta, vermicelli, noodles, instant noodles, milk, cooking oil, medicine, medical devices, books, journals, newspapers and pet food.
READ MORE: “We Don’t Earn Dubai-Level Money” Many Unhappy With Revised SST That’s Starting On 1 July
READ MORE: What Is SST And What Services Are Exempted From It?
READ MORE: Electricity (Below 600kwh) And Water Remain Exempt From SST Hike
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