PUTRAJAYA: Imported apples and oranges will be exempted from the Sales and Services Tax (SST), responding to public concerns, Prime Minister Datuk Seri Anwar Ibrahim announced.
He stated that while it is preferable to consume local fruits such as papayas and bananas, the Cabinet decided on Wednesday (June 25) to exempt these popular fruits.
Anwar conveyed this decision to the media after launching the Kota Madani project in Precinct 19 on Thursday (June 26).
"There will not be exemptions for other imported fruits as we have many local fruits to choose from. However, we compromise with apples and oranges as there have been many requests from the public."
"The sales value threshold will now be increased from half a million to RM1 million. There will be further announcements and clarification on this," Anwar added.
In his speech earlier, he advised that it is better to eat a local banana a day rather than apples.
On June 9, the government announced a targeted review of the SST rate, effective from July 1.
The sales tax rate would remain the same for essential goods, while a rate of five or 10% will be imposed on non-essential or discretionary goods.
On June 19, the government stated it would review the implementation of the revision and expansion of the SST on several selected imported goods, including fruits such as apples and mandarin oranges.
Any person providing taxable services in excess of a prescribed threshold is required to register for service tax. The threshold is generally RM500,000, however certain services have a different threshold.
