The government has decided to exempt apples and oranges from the implementation of the Sales and Services Tax (SST) which is being expanded on imported fruits starting July 1, 2025.
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said the decision was made after taking into account the concerns of the people, especially the low-income group.
According to him, the decision was reached as a result of discussions by the Cabinet which took into account public concerns regarding the implementation of the tax on imported fruits.
“Although the implementation of SST on imported fruits continues, special exemptions are given to apples and oranges,” he said when speaking at the Kota Madani Groundbreaking Ceremony here, Thursday.
He added that the high demand among the people for the two types of fruits was also the main factor in the exemption being granted.
Earlier, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi announced that the government was open to reviewing the implementation of the expanded SST on selected imported goods, including fruits such as apples and mandarin oranges.
On June 9, the government announced a targeted review of the implementation of the SST, with a tax rate of between five and 10% imposed on non-essential goods. Basic necessities will remain at the current rate.
The implementation of the revised SST also involves an expansion to six new service categories, namely rental or leasing, construction, finance, private healthcare, education and beauty.