PETALING JAYA: The Finance Ministry has clarified details regarding the expanded Sales and Service Tax (SST), specifying that the 5% tax is levied on goods manufactured locally and on imports.
"If the fruits are imported, they will be subject to the 5% sales tax," the Ministry stated. However, it confirmed that locally grown fruits are exempted from any sales tax.
"In addition, selected imported foods such as rice, wheat, sugar, salt, and meat are exempted from the tax as they are considered basic essentials," the Ministry added.
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It further clarified that locally manufactured and imported palm oil for cooking oil is also exempted from the tax, and refined sugar is not taxed.
Previously it was reported that the expanded SST rates would come into effect on July 1.
In a statement on Monday (June 9), the ministry said the measure was to strengthen the country's fiscal position by increasing revenue and broadening the tax base.
