Kuala lumpur: Extending the Sales and Service Tax (SST) to imported fruit is part of the government’s efforts to curb ongoing smuggling in border states, said Prime Minister, Datuk Seri Anwar Ibrahim. Anwar, who is also Finance Minister, stated that the move is also intended to encourage the public to prioritize local fruit.

According to BERNAMA News Agency, Anwar emphasized that the tax policy is crucial to ensure that citizens opt for local produce instead of imported options. He highlighted the persistent issue of smuggling through border areas such as Sungai Golok in Kelantan, Bukit Kayu Hitam in Kedah, and Wang Kelian and Padang Besar in Perlis.

Anwar discussed this initiative while officiating the closing ceremony of the Kelantan edition of the MADANI Rakyat Programme (PMR) 2025, held at the Sultan Muhammad IV Stadium. The event was attended by prominent figures, including Kelantan Menteri Besar, Datuk Mohd Nassuruddin Daud; Science, Technology and Innovation Minister, Chang Lih Kang; Home Minister, Datuk Seri Saifuddin Nasution Ismail; and Chief Secretary to the Government, Tan Sri Shamsul Azri Abu Bakar.

Anwar further explained that while the SST has been extended, certain imported fruits, such as oranges and apples, remain exempt from the tax for now. He expressed appreciation for the quality of local avocados from Sabah, noting their superiority over imported varieties, and stressed the importance of promoting local agricultural products.

The Prime Minister also discussed Kelantan’s potential as an economic attraction with the Kelantan Menteri Besar. He pointed out that states like Selangor, Johor, and Sarawak have their own economic strengths, suggesting that the government could grant them greater autonomy.

On June 27, Treasury secretary-general, Datuk Johan Mahmood Merican, noted that while some imported fruits like strawberries, blueberries, and avocados would remain subject to SST under the extension, the exemption for apples and oranges was designed to ease the financial burden on consumers, given their high consumption among Malaysians.