KOTA BHARU (Aug 9): Extending the sales and service tax (SST) to imported fruits is part of the government’s efforts to curb ongoing smuggling in border states, said Prime Minister Datuk Seri Anwar Ibrahim.

Anwar, who is also finance minister, said that the move is also intended to encourage the public to prioritise local fruits.

“Some people are unhappy about the tax on imported fruits, but this is my way of ensuring that people choose local produce.

“Otherwise, smuggling will continue through border areas such as Sungai Golok in Kelantan, Bukit Kayu Hitam in Kedah, and Wang Kelian and Padang Besar in Perlis.

He said this when officiating the closing ceremony of the Kelantan edition of the Madani Rakyat Programme (PMR) 2025, held at the Sultan Muhammad IV Stadium, here, on Saturday.

Also present were Kelantan Menteri Besar Datuk Mohd Nassuruddin Daud; Science, Technology and Innovation Minister Chang Lih Kang; Home Minister Datuk Seri Saifuddin Nasution Ismail; and Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar.

Explaining further, the prime minister said that certain imported fruits, such as oranges and apples, remain exempt from the SST for now.

He also commended the quality of local avocados from Sabah, noting that they were superior to imported varieties, and emphasised the need to promote local agricultural products. 

“So, we do have a choice. I have also discussed with the Kelantan Menteri Besar the state’s potential as an economic attraction.

“States like Selangor, Johor and Sarawak already have their own economic strengths, and the government can grant them greater autonomy,” he said.

On June 27, Treasury secretary general Datuk Johan Mahmood Merican said that, while certain imported fruits such as strawberries, blueberries and avocados would remain subject to SST under the extension, the exemption for apples and oranges was intended to ease the financial burden on consumers, given their high consumption among Malaysians.

Read also:
PM: Apples and oranges to be exempted from SST
Expanded SST to kick in on July 1 with 5%-10% sales tax on selected, non-essential goods, says MOF

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