The government has announced an exemption from the Sales and Services Tax (SST) for imported apples and oranges. The decision, revealed by Prime Minister Datuk Seri Anwar Ibrahim, marks a reversal from the earlier expansion of the SST, which had included these popular fruits as taxable goods.
The initial inclusion of imported fruits and certain vegetables in the broadened SST scope, set to take effect on July 1, had drawn widespread disappointment and criticism from consumers. Many argued that these items are staple nutritional components for daily consumption across all income groups, not luxury goods. Concerns were particularly raised about the potential impact on the cost of living for lower and middle-income households.
Prime Minister Anwar Ibrahim, speaking at an event in Putrajaya, acknowledged the public’s concerns. “There are still people complaining, saying that rural folk and the poor also want to eat apples, and they quote the old saying ‘an apple a day keeps the doctor away’,” he stated, adding a touch of humor by suggesting bananas are equally nutritious due to their potassium content.
“So, yesterday [Wednesday, June 25, 2025] we decided to relax fruit import restrictions. There is a small tax, but apples and oranges are exempt,” the Prime Minister confirmed. He reiterated the Cabinet’s commitment to ensuring essential items remain affordable for the populace.
The move comes after various stakeholders, including consumer groups and fruit importers, voiced their apprehension over the potential price hikes for imported fruits. They highlighted that many temperate fruits, such as apples and oranges, are not widely cultivated locally, making imported varieties essential for meeting consumer demand and dietary needs.
While apples and oranges are now exempt, it is understood that other imported fruits may still be subject to a minimal tax.
