Kuala Lumpur (VNA) – The Malaysian Government has announced plans to expand its national sales and service tax (SST) from July 1, including a new 5% rate on imported fruit, as part of efforts to promote local agricultural consumption and enhance national food security.
Johan Mahmood Merican, Secretary-General of the Malaysian Ministry of Finance, said the tax adjustment supports the government’s strategy to reduce reliance on foreign food supply chains and to assist domestic farmers. The Federal Agricultural Marketing Authority is also working to improve the quality of local produce such as melon and pineapple, offering consumers affordable alternatives.
However, Mydin Mohamed Holdings Managing Director Ameer Ali Mydin noted that Malaysia still lacks sufficient domestic fruit supply to meet consumer demand, especially for seasonal varieties like mangosteen and rambutan. While staples like watermelon and banana are available year-round, the country relies heavily on imports for fruits such as apple, orange, and pear, which do not thrive in Malaysia’s climate.
He also pointed out that strawberries, for example, can only be grown in limited highland areas like Cameron Highlands.
The Malaysian Government has yet to release an official exemption list, but there are concerns that all imported fruits may fall under the new tax policy.
Malaysian businesses are closely monitoring upcoming regulations and have called for greater transparency. They caution that categorising fruit as a luxury item may widen the socioeconomic gap, disproportionately affecting lower-income groups./.
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