Zahid Says Govt May Reconsider 5-10% SST On Imported Fruits Like Apples & Oranges

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The government may review its decision to impose the expanded Sales and Services Tax (SST) on imported fruits that aren't grown in Malaysia

According to Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, these fruits include apples and mandarin oranges, amid concerns raised by industry players.

Speaking to reporters after officiating a Teachers' Day event for the Community Development Department (Kemas), Zahid acknowledged growing public concern over the new tax structure — set to take effect on 1 July 2025 — and said the matter would be brought to the cabinet for consideration.

"I believe it is reasonable for [the new SST rate on certain goods] to be reviewed," Zahid said, adding that an adjustment might be made to the list of taxable goods.

"The revenue from the fruit tax to the country is not that high. So if SST is imposed, the price will increase. I know the purpose is to protect local fruits, but we do not produce apples and mandarin oranges."

His remarks came shortly after Mydin boss Datuk Ameer Ali Mydin publicly criticised the move

Calling it unreasonable, he warned that it would disproportionately affect low-income consumers who rely on imported fruits as part of their diet.

Zahid said Ameer's comments were fair and should be discussed at the ministerial level, especially as the government considers how best to balance protecting local agriculture with consumer needs, Bernama reported.

"Even though the SST is to protect the local fruit industry, we must understand that not all fruits can be produced here," he added.

Unsure of what's changing with the expanded SST from 1 July? Here's your refresher

The government had previously announced that the revised SST framework would maintain 0% tax on essential goods such as rice, sugar, wheat, salt, meat and locally grown fruits.

However, imported fruits like apples, oranges, and berries were listed under discretionary goods and would be taxed at either 5% or 10%.

On top of that, the service tax is also expanding to cover six additional sectors, namely logistics (rental/leasing), construction, finance, private healthcare, private education, and beauty services.

The Finance Ministry has said the new SST structure is expected to generate an additional RM5 billion in revenue within the first six months, but Zahid's latest remarks suggest the government may tweak the list based on public feedback.