In Malaysia, the imposition of a 5% sales tax on imported fruits is drawing attention from stakeholders in the agriculture sector. Datuk Ameer Ali Mydin of Mydin Mohamed Holdings Bhd highlighted the necessity of these imports due to insufficient local production. He pointed out, "Fruits are a basic necessity, just like protein," emphasizing that the local fruit supply cannot meet the demand. Seasonal varieties such as rambutan and mangosteen lack year-round availability, while the climate does not favor the cultivation of fruits like apples and pears.
As the expanded SST (Sales and Service Tax) regime will include this tax starting July 1, concerns arise about clarity. Ameer noted the absence of a governmental exemption list, stating, "The government has yet to release an exemption list, so for now, we have to assume all imported fruits will be taxed." The new tax framework is criticized for potentially misleading the public on affordability, especially for lower-income groups. He commented, "It's misleading to claim that essential goods for the B40 are exempt when basic fruits are included."
Additional cost factors, such as rising cargo handling fees at Port Klang, further exacerbate the pricing challenges for imported fruits. MCA president Datuk Seri Dr Wee Ka Siong also voiced opposition, noting the consumption needs of the B40 income group. As Malaysia produces only 19% of its mango consumption domestically, reliance on imports remains a reality, with Dr Wee indicating, "All of these are far more affordable than avocados."
Source: The Star