Malaysian favourites: Fruit trader Chong Kau Moi, 72, arranging fresh fruits at Chai Leng Park ‘Wai Sek Kai’ food court in Perai, in this file photo.
PETALING JAYA: Common imported fruits such as apples, oranges and pears are everyday staples for Malaysians and should not be subjected to a 5% sales tax, says Datuk Ameer Ali Mydin.
The Mydin Mohamed Holdings Bhd managing director said Malaysia does not produce enough fruit to meet local demand, making imports essential to ensure a consistent supply.
“Fruits are a basic necessity, just like protein. While local varieties such as watermelon and bananas are available year-round, supply is insufficient.
“Seasonal fruits like rambutan, mangosteen and langsat are not always in season, so imported fruit is necessary. Otherwise, are we expected to survive on just watermelon and bananas?” he said when contacted.
“Our climate doesn’t support the cultivation of all fruits, such as apples, oranges and pears. Even strawberries are challenging to grow due to limited land in places like Cameron Highlands.
“On top of that, efforts to cultivate premium varieties – like Harumanis mangoes – only add to costs.”
Under the expanded SST regime slated to be enforced on July 1, a 5% tax will be imposed on all imported fruits, while locally-grown produce will remain exempt.
For example, strawberries grown in Cameron Highlands will not be taxed, but imported ones will be.
Ameer expressed concern over the lack of clarity in the expanded tax as the government has yet to release a list of what will be exempted.
“The government has yet to release an exemption list, so for now, we have to assume all imported fruits will be taxed. The Prime Minister often refers to avocados, but not everyone eats them.
“We need transparency about what this tax actually covers. Labelling it a luxury tax is misleading and risks widening the gap between income groups,” he said.
He added that while the policy may not entirely deprive the B40 group of fruits, it will certainly make them less affordable.
“It’s misleading to claim that essential goods for the B40 are exempt when basic fruits are included. The government should be honest, this is clearly about revenue generation,” he said.
Ameer added that the impact of the expanded SST on the prices of imported food will be compounded by other costs such as a 30% hike in cargo handling fees in Port Klang which will also begin in July.
Meanwhile, MCA president Datuk Seri Dr Wee Ka Siong echoed Ameer’s concerns, saying that the sales tax should not apply to fruits such as mangoes, apples, oranges and dates.
“The reason is simple – the B40 group also consumes these fruits. Local production cannot meet the high demand for fruits,” he said.
For instance, Malaysia only produces 19% of all mangoes eaten in the country while the rest are imported, Dr Wee said.
“All of these are far more affordable than avocados,” he said in a Facebook post yesterday.
