KUALA LUMPUR, August 27 — The Ministry of Finance (MOF) said the Sales and Services Tax (SST) on imported fruits is projected to contribute RM38 million in revenue annually starting in 2026. This forms part of the wider SST expansion, effective July 1, 2025, which is expected to generate an additional RM10 billion annually.
The ministry explained that the move aims to strengthen Malaysia’s fiscal position while supporting local fruit growers, though exemptions were made for commonly consumed fruits like apples, oranges, dates, and mandarin oranges to protect vulnerable groups.
The MOF added that despite calls for the return of the Goods and Services Tax (GST), the government has no plans to reintroduce it, citing low general income levels and longer preparation time required for businesses. It stressed that SST expansion offers a quicker fiscal impact and is more progressive, with 1,826 items now exempted or zero-rated compared to 607 under GST previously.
The ministry noted that the expanded scope is designed to fairly distribute the tax burden while balancing fiscal sustainability with the welfare of the people under the Madani Economic Framework.
