Kuala lumpur: Apples and oranges have been exempted from the expanded Sales and Service Tax (SST) as they cannot be cultivated in Malaysia and are widely consumed by the public, according to Treasury secretary-general Datuk Johan Mahmood Merican. He emphasized the significance of these fruits on dining tables during festive seasons such as Chinese New Year and Hari Raya, highlighting their role as daily essentials despite being imported.

According to BERNAMA News Agency, Johan explained that while certain imported fruits like strawberries, blueberries, and avocados will remain taxable under the expanded SST, the exemption for apples and oranges is intended to ease the financial burden on consumers due to their high consumption among Malaysians. He noted the importance of encouraging local fruit consumption while recognizing the essential role of apples and oranges in daily life.

Johan also mentioned that local fruits, including the widely consumed ‘pisang mas’, are not subject to SST, ensuring price stability for consumers. He pointed out that 90 percent of bananas consumed in Malaysia are locally sourced, while only 10 percent are imported. Supporting local produce helps the economy and ensures affordability, with popular snacks like ‘pisang goreng’ remaining unaffected under the expanded tax scope unless imported bananas are used.

Additionally, Johan stated that the government will maintain a zero tax rate on gold bars and jewellery, acknowledging their cultural importance and role in the local economy. Gold is often used within communities for savings, as collateral for loans, and as blessings during weddings and childbirth, hence the decision to maintain a zero tax rate due to its importance in the community and its role in the economy.

Johan concluded by saying the government aims to generate an additional RM10 billion in revenue from SST collections. The government has opted to retain the SST instead of reintroducing the Goods and Services Tax (GST), as SST imposes a lighter burden on consumers.