SST on imported goods including fruits may be reviewed, says Zahid
"I believe it is reasonable for the new SST rate on specific goods to be reviewed, and I think there will be an adjustment for certain materials to be categorised for tax at five to 10 per cent.
"(But) don't take that conclusively," he told reporters after officiating the Community Development Department (Kemas) Teachers' Day Celebration, here on Thursday (June 19).
Earlier, Mydin Holdings Bhd managing director Datuk Ameer Ali Mydin Mohamed described the move to impose SST on imported fruit as unreasonable because it also affects low-income consumers.
Commenting further, Ahmad Zahid said the views put forward by Ameer Ali should be brought to the Cabinet meeting as it touches on the people's needs for imported fruits.
"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 (of imposing SST on imported fruits) is to protect local fruits, but we do not produce apples and mandarin oranges. I am sure the Finance Ministry and Economy Ministry are also looking into the matter," he said.
On June 9, the government announced a targeted review of the SST rate, which would take effect from July 1, 2025. The sales tax rate would remain the same for essential goods, while a rate of five or 10% will be imposed on non-essential or discretionary goods.
At the same time, the scope of service tax has also been expanded to cover six new services, including rental or leasing, construction, finance, private healthcare, education and beauty. – Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
9 hours ago
- The Sun
FMM calls for bold reforms to counter levy blow
PETALING JAYA: The Federation of Malaysian Manufacturers (FMM) has urged the government to act swiftly and decisively as a coordinated response to the United States' decision to impose a 25% blanket tariff on most Malaysian goods entering the US market, with certain exemptions, from Aug 1. FMM President Tan Sri Dato' Soh Thian Lai warned that the new tariff risks further destabilising an already fragile industrial landscape, besides severely undermining export competitiveness and straining manufacturers. 'With strong government-industry collaboration, clear and timely policies, and bold structural reforms, Malaysia can preserve its manufacturing leadership, withstand short-term shocks, and chart a sustainable path forward,' said Soh in a statement today. Soh said the announcement came as a surprise since intensive negotiations were ongoing between Washington and the Ministry of Investment, Trade and Industry (MITI) through the National Geoeconomic Command Centre (NGCC). He said that the manufacturing sector is already burdened by a previous 10% tariff, along with rising costs from the expanded Sales and Service Tax (SST) and electricity base tariff hikes. Soh said that feedback from manufacturers indicated the 10% tariff had already threatened the sustainability of export operations. He added that many feared further hikes would lead to steep shipment declines and eroded profit margins. He said that while critical products like semiconductors are exempt, supporting industries, such as suppliers of parts, machinery and services, remain exposed to significant disruption. He added that key export segments such as rubber products, textiles, furniture and industrial components will also be adversely affected. 'Although Malaysia's initial proposed 24% tariff in April was lower than those of peers like Cambodia, Vietnam and Thailand, the new blanket 25% rate places Malaysia in a more punitive position,' said Soh. He highlighted that Vietnam has negotiated a reduced 20% rate, while Singapore, Brunei and the Philippines were excluded entirely from the latest round. FMM urged the government to intensify diplomatic engagement to secure a deferral or rollback of the tariff, citing Malaysia's vital role in US and global supply chains. It called for the country's compliance record, investment linkages and value-added contributions to be strongly asserted. Domestically, FMM is pressing for targeted financial relief, export promotion and structural reforms to improve cost efficiency. Among its key demands is SST reform, including a business-to-business (B2B) service tax exemption for licensed manufacturers. 'The absence of a business-to-business (B2B) exemption mechanism means service tax is imposed on critical production-related services such as logistics, warehousing, leasing, and contract processing resulting in cascading tax effects that not only inflate production costs but ultimately pass through to consumers. 'This undermines tax neutrality, distorts input choices, and reduces Malaysia's industrial and export competitiveness,' said Soh. FMM proposed measures such as raising the Market Development Grant ceiling, waiving MATRADE fees for association-led trade missions, and supporting exporters in branding, certification and digital access. FMM also recommended tax incentives for automation and digitalisation, a MADANI Manufacturing Digitalisation Grant for SMEs, and low-interest financing backed by workforce upskilling to accelerate Industry 4.0 adoption. To harmonise regional responses to trade shocks and strengthen intra-ASEAN production links, FMM suggested the swift establishment of a National Supply Chain Council and a dedicated ASEAN Supply Chain Coordination Council under Malaysia's ASEAN Chairmanship. It further urged the government to fast-track the Malaysia-European Union Free Trade Agreement and pursue trade partnerships in Africa, Latin America and the Middle East to reduce overreliance on any single export destination and to reinforce Malaysia's global competitiveness.
Borneo Post
9 hours ago
- Borneo Post
DOSM: Ageing farmers in Sarawak highlight need to attract youth to agriculture
Dr Rundi (centre), Mohd Uzir (second right), Martin (second left) and others pose with the Sarawak-level Agriculture Census Interim Report 2024 book. – Photo by Roystein Emmor KUCHING (July 9): The ageing workforce in Sarawak's agriculture sector must be urgently addressed by increasing youth participation, said the Department of Statistics Malaysia (DOSM) Sarawak. In a statement issued in conjunction with the launch of the Sarawak-level Agriculture Census Interim Report 2024 today, the department said the findings from the census underscored the need to strengthen the support ecosystem for farmers, especially in areas such as skills training, technology transfer and productivity enhancement. 'This situation also calls for the implementation of comprehensive and integrated policies in line with the National Agrofood Policy 2.0 (NAP 2.0), which emphasises food security, sustainability and competitiveness in the agrofood sector,' DOSM said. The report was launched by State Minister for Food Industry, Commodity, and Regional Development Dato Sri Dr Stephen Rundi Utom. DOSM Sarawak reported that a total of 147,414 agricultural holdings were recorded in the state as of 2023, with 98.6 per cent (145,378 holdings) individually owned and 1.4 per cent (2,036 holdings) held by organisations. Nearly all the individuals involved in agriculture (99.9 per cent) were Malaysian citizens, and 80 per cent were male. In terms of age distribution, 43.6 per cent of individual holdings were owned by those aged 60 and above, while 37.3 per cent were owned by individuals aged 46 to 59, further illustrating the sector's ageing demographic. Meanwhile, the report reaffirmed that oil palm remains Sarawak's dominant commodity, contributing 79 per cent to the total value of the state's agriculture sector. At the national level, oil palm generated RM83.30 billion in sales in 2023, with Sarawak accounting for RM18.61 billion or 22.3 per cent of the national total. Also present were DOSM chief statistician Datuk Seri Dr Mohd Uzir Mahidin, who is also the 2024 Agriculture Census commissioner, and State Deputy Minister of Food Industry, Commodity, and Regional Development, Datuk Martin Ben. agriculture DOSM Dr Stephen Rundi Utom elderly farmers lead youth
Borneo Post
9 hours ago
- Borneo Post
Samenta warns US tariff threatens Malaysia's SMEs, trade competitiveness
Ng warns that the move poses a serious threat to Malaysia's trade competitiveness and industrial base, particularly to export-oriented SMEs, which form the backbone of the manufacturing sector. KUCHING (July 9): The Small and Medium Enterprises Association of Malaysia (Samenta) has expressed deep concern over the United States government's decision to impose a 25 per cent tariff on Malaysian exports, set to take effect in August. In a statement, Samenta president Datuk William Ng warned that the move poses a serious threat to Malaysia's trade competitiveness and industrial base, particularly to export-oriented small and medium enterprises (SMEs), which form the backbone of the manufacturing sector. He described the tariff as an 'economic earthquake' for SMEs heavily reliant on the US market. 'We acknowledge the government's continued pursuit of a 'balanced and mutually beneficial' trade resolution with Washington, DC, but we urgently need coordinated action to cushion the impact on impacted SMEs,' Ng said. As such, Samenta is urging the government to expedite the rollout of previously announced support initiatives, including a RM1 billion increase in Business Financing Guarantee Scheme (SJPP) loan guarantees, RM500 million in soft loans through development financial institutions, and a RM50 million boost to Malaysia External Trade Development Corp (Matrade). 'These initiatives must be delivered quickly and with minimal red-tape,' Ng emphasised. 'More importantly, these relief measures must be extended to domestic, non- exporting businesses, which will be equally affected by the anticipated tailwinds from subdued exports and weaker domestic demand.' He further urged the government to halt all new and planned cost increases on SMEs, including the proposed rationalisation of petrol subsidy and incremental fees by various agencies and local councils. Ng also highlighted persistent labour shortages, especially in service sectors like food and beverage, tourism, and logistics. In view of this, Samenta is calling on the government to urgently review and ease restrictions on the hiring of foreign workers to help service-based SMEs absorb economic slack amid export headwinds. 'As Samenta has consistently pointed out, Malaysia's headline economic growth often masks deeper structural weaknesses within the SME sector. 'The real paradox is our ability to register macro-level gains while most SMEs remain trapped in low-margin, low-scale operations, squeezed by rising costs, regulatory pressures, and now, geopolitical shocks,' said Ng. He also noted the imposition of US tariffs is a stark reminder of the urgent need to recalibrate Malaysia's economic model to prioritise the long-term viability and competitiveness of its 1.5 million SMEs, with the creative and service economy at the heart of it. 'Samenta remains fully committed to working hand-in-hand with the government to support all SMEs directly or indirectly affected by the tariff,' he added. Samenta US tariff William Ng
