Gov To Review Expanded SST, Especially On Imported Fruits

The expanded SST on imported fruits like oranges and apples will affect low income groups.

Credit: Malay Mail & Freepik

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Early this month, the government announced that the expanded sales and service tax (SST) will come into effect from 1 July onwards.

The tax revision will affect the prices of imported fruits like oranges and apples, which are taxed at 5%. This led to some objecting the expanded SST because they felt imported fruits are important to maintain health, especially among the low-income groups.

The government has now said it’ll review the implementation of the SST on several selected goods, including fruits like apples and mandarin oranges.

Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi believes it’s reasonable to review the expanded SST, but added not to take the mulling period conclusively yet.

Previously, Mydin Holdings Bhd managing director Datuk Ameer Ali Mydin Mohamed said the move to impose expanded SST on imported fruits as unreasonable because it’ll affect low-income consumers.

While he understood the expanded SST will protect local fruits, he said apples and mandarin oranges are not locally grown.

He added that the fruit tax revenue isn’t that high so if the expanded SST is imposed, the price will increase.