Govt ensures essential goods stay tax-free, says Mat Sabu

The government will continue to ensure essential goods like rice, cooking oil, vegetables, chicken, and fish remain tax-free to safeguard the people’s food security.

Agriculture and Food Security Minister Mohamad Sabu said the implementation of revised Sales Tax (ST), effective July 1, only involves selected and premium goods, at a rate of five or 10 percent.

According to him, the items in this category include truffle mushrooms, racing bicycles, and king crab.

“This is a balanced approach where most people won’t be affected, while those who are better off can contribute fairly to the country’s development.

“Insya-Allah, the Madani government will continue to ensure policies that are formulated are centred on the principles of social justice and well-being of the people,” he posted on Facebook.

Based on the Finance Ministry’s explanation, the zero percent sales tax is maintained for daily essential goods, like chicken, beef, lamb, fish, shrimp, squid, vegetables, local fruits, rice, barley, oats, wheat, flour, canned sardines, sugar, and salt.

Also included are white bread, pasta, vermicelli, noodles, instant noodles, milk, cooking oil, medicine, medical devices, books, journals, newspapers, and pet food.

Zero percent sales tax is also retained for basic construction materials like cement, bricks, and sand, as well as agricultural sector inputs such as fertilisers, pesticides, and agricultural and livestock machinery.

The ministry added that the government had taken measures to ensure the ST is not imposed on daily essential goods to avoid directly affecting the cost of living for the majority of Malaysians and to maintain a controlled inflation rate.

- Bernama

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