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Prime Minister Datuk Seri Anwar Ibrahim today, 26 June, announced that imported apples and oranges will be exempted from the expanded Sales and Services Tax (SST)
The announcement follows public backlash and concerns that the tax would disproportionately affect lower-income households.
The exemption comes just days before the revised SST, which includes a 5% tax on selected imported fruits, is set to take effect on 1 July 2025.
"I see there are many complaints that the poor and B40 still eat imported apples and oranges because they are cheap," Anwar said during a speech at the launch of the Kota Madani project in Precinct 19, Putrajaya.
He admitted that his earlier remarks, suggesting that only "rich people eating avocados" would be affected by the tax, had drawn criticism.
"Usually, when a finance minister has made a decision, they must be firm, they can't flip-flop. At first I thought, there's no need to eat apples and oranges, they can eat papaya, guava, langsat — when in season — dukun, durian. But that's ok. Because of the complaints, we give exemptions," he said.
Anwar also noted that while avocados are being grown in Sabah, local production is still insufficient to meet national demand, a challenge also faced with other fruits like mangoes, which come from India.
Anwar clarified that while some imported fruits will still be taxed, apples and oranges will now be exempted, in response to public feedback
He also referenced the popular phrase "an apple a day keeps the doctor away", but quipped that bananas are actually healthier because they are high in potassium.
"That's not true. It's actually a banana. They are high in potassium," he said while adding that the apple consumption is influenced by the old notion that eating an apple a day is healthy.
Last week, Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi said the government was reviewing the SST implementation, particularly on fruits not grown locally
He suggested that the 5–10% tax on such items, including apples and oranges, needed to be reconsidered.
The policy had also drawn criticism from businesses.
Mydin managing director Datuk Ameer Ali Mydin had voiced concern that the SST on imported fruits would burden low-income groups who still rely on these as affordable staples.
Under current guidelines:
- All locally grown fruits remain exempt from SST.
- Imported fruits were initially to be taxed 5% starting 1 July.
- With this latest update, imported apples and oranges are now officially exempt.
