Citizens must not be burdened by enforcement of expanded SST

MCA Youth urges the government to seriously reconsider the manner in which it is implementing the expanded Sales and Services Tax (SST). The confusion we are currently witnessing is not just a matter of poor coordination; it is a matter of public trust and economic fairness.

The government must answer a very simple yet critical question: is the expanded SST enforcement to be based on what is officially written in the Government Gazette, or on verbal explanations given by the Finance Ministry’s spokespersons? This lack of clarity is unacceptable in tax policy, especially one that affects the daily cost of living for ordinary Malaysians.

On June 9, the government published the Service Tax (Rate Of Tax) (Amendment) Order 2025 as well as the Service Tax Act 2018 in the Gazette, listing commonly consumed fruits such as guava, mango, lime, watermelon, durian and mangosteen as taxable.

This caused widespread concern. Only after public backlash did the ministry clarify that the 5% sales tax would apply only to imported fruits. But which instruction should businesses and enforcement agencies follow – the Gazette or the government spokesperson’s?

Malaysians can ill afford to overlook the real issue. Our country is heavily dependent on imported food. Taxing imported fruits in a blanket manner means essential items like apples, oranges, and grapes – staples in many households – will now cost more.

These are not luxury items; they are everyday necessities for millions of families.

Fruits are just one example. In October last year alone, Malaysia spent RM77.8bil on imported food. According to the USDA Economic Research Service, Malaysian households spent an average of US$1,940 (about RM8,208) on food in 2023, the highest in South-East Asia. This shows just how serious the burden of food costs already is for the average Malaysian family.

The government claims that the expanded SST will not affect most people. But how is that possible when it touches directly on what we eat every day?

That is why we call on the government to immediately revoke the Gazette’s taxation order, and to conduct a thorough review of all the items listed, especially those that impact everyday meals. If there are errors or oversights, correct them. If implementation needs to be postponed, then delay it. What must not happen is forcing the people to pay the price for rushed or careless policymaking.

At a time when Malaysians are already struggling with the rising cost of living, the government’s priority should be protecting the rakyat, not adding to their burden.

SAW YEE FUNG

MCA Youth secretary-general