Kuala Lumpur: The government is set to review the implementation of the revised Sales and Services Tax (SST) on selected imported goods, including fruits such as apples and mandarin oranges, as announced by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi. The proposed tax rates on these goods range from five to 10 percent.

According to BERNAMA News Agency, Deputy Prime Minister Zahid highlighted that these fruits are not produced locally but are entirely imported from foreign countries, prompting a reconsideration of the SST imposition. He suggested that adjustments might be necessary to categorize certain materials under a tax rate of five to 10 percent, although he advised against drawing conclusive assumptions at this stage.

The announcement follows earlier remarks by Mydin Holdings Bhd managing director Datuk Ameer Ali Mydin Mohamed, who described the SST on imported fruits as unreasonable, particularly due to its impact on low-income consumers. Deputy Prime Minister Zahid agreed that Ameer Ali’s concerns should be addressed in the Cabinet meeting, emphasizing the relatively low revenue generated from fruit taxes and the consequent price increase if SST is imposed.

The Deputy Prime Minister noted that the SST on imported fruits aims to protect local produce, despite the fact that Malaysia does not cultivate apples and mandarin oranges. He expressed confidence that both the Ministry of Finance and the Ministry of Economy are examining the situation.

This development follows a government announcement on June 9 regarding a targeted review of the SST rate, effective from July 1, 2025. While the sales tax rate will remain unchanged for essential goods, a five or 10 percent rate will apply to non-essential or discretionary items. Additionally, the service tax scope has been expanded to include sectors like rental or leasing, construction, finance, private healthcare, education, and beauty.