Finance Minister Datuk Seri Anwar Ibrahim has revealed that sales and services tax (SST) revenue from imported fruits is expected to reach RM38 million in 2026.
He explained that the review of sales tax rates and the expanded SST measures, which came into effect on July 1, are projected to boost government revenue by an additional RM10 billion from 2026 onwards. The SST rate review is aimed at strengthening the nation’s finances while supporting and promoting the local fruit industry.
“After considering public feedback, the government has decided to exempt apples, oranges, dates, and tangerines from sales tax,” Anwar said, adding that the move ensures neglected groups have access to nutritious and everyday food items.
Anwar made the statement in a written reply to questions from PKR’s Tebrau parliamentary member, Jimmy Puah Wee Tse, in the Dewan Rakyat yesterday.
He noted that the expanded SST measures are implemented in a targeted manner to ensure a fair distribution of the tax burden, placing responsibility on those with greater ability to pay.
Responding to a question from MCA’s Ayer Itam MP Datuk Seri Wee Ka Siong, Anwar said the government has no plans to reinstate the goods and services tax (GST), citing insufficient household income levels to support broad GST implementation.
“Sales tax delivers fiscal benefits faster than GST, which would take up to two years for businesses to update their systems,” he explained.
He also highlighted that the revised sales tax is more progressive: under the targeted SST structure, the majority of goods and services used by the public remain untaxed. Following the July 1 review, 1,826 items were either exempt or zero-rated under SST, compared to only 607 zero-rated items under the GST system prior to its repeal in 2018.
“Expanded SST coverage applies to 70% of services listed under the Malaysia Standard Industrial Classification (MSIC) codes, compared to 76% under GST,” Anwar added.
