PM calls for local fruits at govt functions, open to SST review

Summary 

• Prime Minister Anwar Ibrahim urges government departments to serve local food and fruits at official events to support domestic agriculture.

• He says SST on imported fruits may be reviewed to avoid burdening low-income groups, stressing that the tax targets luxury imports and high-fee international schools, not ordinary citizens.

Prime Minister Anwar Ibrahim has proposed that government departments and agencies serve local fruits during official functions to promote domestic agriculture, amid public criticism over a looming five percent sales and service tax (SST) on imported fruits. 

In calling for the civil service to play their part in advancing the nation’s local produce, Anwar said it is “doable” for official receptions or government office events to only use local food and fruits.

“Let’s support local products,” Bernama reported him as saying after a meeting with the Johor PKR leadership today.  

The prime minister, who is also the finance minister, added that Putrajaya is open to reconsidering the list of items and services subject to the SST’s expanded scope if there is unfairness in its implementation.

“Sometimes people get confused. For example, it was said that bananas are subject to SST. Actually, it’s imported bananas. But we will clarify the matter. 

“The important thing is, we do not want to burden the lower-income group,” Anwar said.

Backlash

Earlier today, Deputy Prime Minister Ahmad Zahid Hamidi said the proposal to tax imported fruits, such as apples and mandarin oranges, which are exclusively imported, should be reconsidered.

Malaysiakini previously reported that Mydin Mohamed Holdings Bhd managing director Ameer Ali Mydin had criticised the government’s move to impose a tax on imported fruits, calling it “nonsensical” as some foreign fruits are considered essential food items consumed by low-income groups.

In defending the SST expansion, Anwar previously fuelled criticism after he cited avocados as an example of an imported luxury fruit typically consumed by high-income earners.

Commenting on the matter of SST on educational institutions, Anwar said the tax will only be imposed on international schools that charge fees above a certain high threshold. 

“Regular schools, private schools that charge RM10,000 or RM20,000 are not taxed. But if it’s RM60,000 a year, then pay a little tax,” he said.

He also reiterated that tax revenue will be used to fund public infrastructure projects such as the construction of schools and the upgrading of public healthcare facilities.

“Wherever I go, hospitals are crowded. Many schools also need repairs. We need funds, and those come from taxes, but not from ordinary citizens. We target the upper class and foreign sectors,” he said.

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