PUTRAJAYA, June 12 — The Ministry of Finance has confirmed that locally grown fruits are exempt from the upcoming Sales Tax expansion effective 1 July 2025, addressing public confusion stemming from recent reports. Only imported fruits, including tropical varieties like bananas, pineapples, and rambutans, will be subject to the 5% tax.
Additionally, companies offering newly taxable services such as rental will have until 1 September 2025 to begin charging the tax if they meet the RM500,000 annual threshold, with a penalty-free grace period granted through December 2025 to support compliance.
