The government will exempt apples and oranges from the sales and service tax (SST), following concerns over fruit prices shared by the public. Prime Minister Datuk Seri Anwar Ibrahim said the decision was made to keep healthy food options affordable, especially for lower-income households.
He explained that although the government continues to promote local fruits, some imported fruits remain widely consumed and accessible.
“During the cabinet meeting, we listened to the people. Some still prefer apples and oranges because they are more affordable,” said Anwar. “So, even though other imported fruits may still carry a small tax, apples and oranges will be exempted.”
Support for Local Fruits Remains a Priority
While announcing the exemption, the Prime Minister emphasised the value of local produce, noting that fruits such as guava, rambutan, langsat, and durian are rich in nutrients and more readily available during their harvest seasons.
He also highlighted ongoing efforts to grow new varieties locally. “Avocados are now being planted in Sabah. We have many types of local fruits,” he said. “But I understand that many in the B40 group continue to choose apples and oranges, which is why we are making this adjustment.”
Income Threshold Raised for Small Enterprises
In the same announcement, Anwar also said that the government has agreed to raise the income threshold for small enterprises and micro traders. The threshold will increase from RM500,000 to RM1 million.
“We are raising it because half a million is too low,” he said. “This is part of our broader effort to encourage support for government reforms.”
Further details about the new threshold will be announced later.
SST Review Follows Earlier Cabinet Consideration
The decision to exempt apples and oranges comes after earlier statements by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi. He said the government was reviewing the proposed SST on fully imported fruits due to its impact on consumers.
Originally, the plan was to introduce a tax of between 5% and 10% on certain imported fruits. However, the Cabinet reconsidered after evaluating its effect on affordability, especially for commonly consumed items like apples and oranges.
2025 Tax Policy Updates
This decision is part of a larger review of the country’s sales and service tax framework. On 9 June, the government announced a targeted revision of the sales tax rate and an expansion of the service tax scope.
These broader changes will take effect on 1 July 2025. The adjustments are aimed at improving national revenue while balancing the cost of living for the public.
(Source: Bernama)
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