Zero sales tax on raw materials a windfall for agriculture 


PUTRAJAYA: The zero sales tax rate on inputs sourced from registered manufacturers for the livestock feed, fertiliser and pesticide industries has been described as a windfall for the agricultural sector.

The Agriculture and Food Security Ministry said in a statement yesterday that the initiative had been highly anticipated by industry players, as it could reduce production costs and help ensure agricultural product prices remained affordable in support of the country’s food security.

The ministry expressed full support for Prime Minister Datuk Seri Anwar Ibrahim’s 2026 New Year Message – particularly its emphasis on the food security agenda.

The ministry said the agenda aligned with efforts to strengthen governance, improve service delivery efficiency and safeguard the well-being of the people.

The ministry also welcomed the government’s commitment to continue implementing 5,000 Agro Madani Sales this year.

“The programme has proven effective in helping to ease the cost of living by providing the public with access to fresh produce and basic necessities at lower prices than the market,” the statement said, Bernama reported.

The ministry reiterated its commitment to continue implementing various strategic initiatives to comprehensively strengthen the country’s food security, in line with its policies and direction.

In his New Year’s message on Monday, the Prime Minister announced a sales tax exemption on critical raw materials or inputs used by registered manufacturers, particularly for goods related to the livestock and agriculture sectors, as a measure to help control the prices of basic necessities.

The exemption covers animal feed, fertilisers and pesticides, in line with efforts to ensure the stability of production costs and the country’s food supply chain.

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