Be'kelalan apple, Tenom avocado, and Gopeng grapes

There is a thriving debate on social media on the expanded SST to be introduced on July 1st. Prime Minister Anwar Ibrahim mistakenly mentioned GST as General Services Tax and that reignited the pre-GE14 political debate over GST. 

The more superior GST was demonised by PH (to include PPBM in 2018), and PAS that Anwar dare not return to it. More so, the system does not allow for any loophole for "businessmen" aligned to PH to evade tax. Anwar cannot postphone and has to take the bull by the horn. 

He cannot expect any shimmering light of hope to balance the budget without worsening the debt situation built over 28 continuous years of deficit spending. The expanded SST still take into account the B40s and M40s to focus on imported and luxury goods.

Unfortunately the common apple, oranges, avocado and grapes consumed by Malaysians are imported and will be taxed. Mydin called on government to exempt imported apple, orange and pears. 

However, a letter to the editor agree and believe its time to encourage production of local fruits. Why not switch to apple from Be'kelaalan, wide choices of local variety citrus, avocado from Tenom and grapes from Gopeng? 

Balance taxes to boost local food production 

LETTERS 

The Star, Wednesday, 18 Jun 2025     

THE recent debate on whether imported fruits, including apples oranges and avocados, should be subjected to the Sales and Service Tax (SST) has sparked strong reactions among Malaysians. While some argue that the move will raise the cost of living, others believe it’s a step in the right direction to support local farmers.

But the bigger question is this: How can we design a tax system that supports both our farmers and everyday consumers?

Let’s start with the basics. Taxes on food affect what we eat, how much we pay, and where our food comes from. If not carefully managed, they can make nutritious food more expensive and create an unfair advantage for imported goods over locally-grown produce.

Right now, the government is considering imposing SST on imported fruit. While this might be bad news for consumers, there’s another side to the story. By taxing imported fruits, the government could give local fruit farmers a better chance to compete. Many local farmers struggle with rising costs and low prices, especially when cheaper imported fruits flood the market.

To balance the impact, the government can introduce targeted support for local farmers. This includes tax exemptions for locally-grown produce (which Malaysia already applies), as well as tax deductions for farm expenses such as seeds, fertilisers, water, and equipment.

Small and medium-sized farms could also benefit from subsidies or grants to modernise operations or adopt sustainable practices like organic farming.

Urban farming should be encouraged in cities. Imagine more Malaysians growing vegetables on rooftops or in community gardens. These urban farms could reduce the need for imported food and provide fresher options closer to home.

To support this development, the government could offer tax incentives and simplify regulations for urban farming businesses.

At the same time, consumers need to be part of the solution. Public campaigns can raise awareness about the benefits of buying local – such as getting fresher produce and supporting the rural economy.

Farmers’ markets and community food programmes can also create strong links between consumers and local producers.

Restaurants and grocery stores could even receive tax breaks for sourcing ingredients locally.

But to truly protect low-income households, the cost of essential food items must remain affordable. Basic items like rice, cooking oil, and vegetables should either be tax-free or taxed at a lower rate to ensure every Malaysian has access to nutritious meals.

Critically, the tax system must be fair and transparent. It shouldn’t favour large importers over small farmers, nor should it punish consumers who want to eat healthily.

The goal is not to make food more expensive but to build a system that supports local production, reduces dependency on imports, and strengthens our food security.

As the government weighs the issue over whether to include imported fruits under SST, the debate offers a chance to rethink how we use taxes to shape the food system. With careful planning and balanced policies, we can protect both our wallets and our farmers, ensuring that good and affordable food is always within reach.

AHMAD NIZAM CHE KASIM

Faculty of Business and Communication

Universiti Malaysia Perlis

From the letter, the imposition of SST on imported fruit as a way to encourage local fruit production is theoretically sound. There need to be a political will to push this through because in Malaysia, new policy introduction does not necessarily bring in investors by the drove.

Sceptics

There are the usual sceptics and short-term snapshot views to highlight current problems as a mean to resist change. The Star reported:

Don’t tax apples, oranges and pears

By KHOO GEK SAN 

NATION

Wednesday, 18 Jun 2025

Malaysian favourites: Fruit trader Chong Kau Moi, 72, arranging fresh fruits at Chai Leng Park ‘Wai Sek Kai’ food court in Perai, in this file photo.

PETALING JAYA: Common imported fruits such as apples, oranges and pears are everyday staples for Malaysians and should not be subjected to a 5% sales tax, says Datuk Ameer Ali Mydin.

The Mydin Mohamed Holdings Bhd managing director said Malay­sia does not produce enough fruit to meet local demand, making imports essential to ensure a consistent supply.

“Fruits are a basic necessity, just like protein. While local varie­ties such as watermelon and bana­nas are available year-round, supply is insufficient.

“Seasonal fruits like rambutan, mangosteen and langsat are not always in season, so imported fruit is necessary. Otherwise, are we expected to survive on just watermelon and bananas?” he said when contacted.

“Our climate doesn’t support the cultivation of all fruits, such as apples, oranges and pears. Even strawberries are challenging to grow due to limited land in places like Cameron Highlands.

“On top of that, efforts to cultivate premium varieties – like Haru­manis mangoes – only add to costs.”

Under the expanded SST regime slated to be enforced on July 1, a 5% tax will be imposed on all imported fruits, while locally-grown produce will remain exempt.

For example, strawberries grown in Cameron Highlands will not be taxed, but imported ones will be.

Ameer expressed concern over the lack of clarity in the expanded tax as the government has yet to release a list of what will be exempted.

“The government has yet to release an exemption list, so for now, we have to assume all imported fruits will be taxed. The Prime Minister often refers to avocados, but not everyone eats them.

“We need transparency about what this tax actually covers. Labelling it a luxury tax is mislea­ding and risks widening the gap between income groups,” he said.

He added that while the policy may not entirely deprive the B40 group of fruits, it will certainly make them less affordable.

“It’s misleading to claim that essential goods for the B40 are exempt when basic fruits are included. The government should be honest, this is clearly about revenue generation,” he said.

Ameer added that the impact of the expanded SST on the prices of imported food will be compounded by other costs such as a 30% hike in cargo handling fees in Port Klang which will also begin in July.

Meanwhile, MCA president Datuk Seri Dr Wee Ka Siong echo­ed Ameer’s concerns, saying that the sales tax should not apply to fruits such as mangoes, apples, oranges and dates.

“The reason is simple – the B40 group also consumes these fruits. Local production cannot meet the high demand for fruits,” he said.

For instance, Malaysia only produces 19% of all mangoes eaten in the country while the rest are imported, Dr Wee said.

“All of these are far more affor­dable than avocados,” he said in a Facebook post yesterday.

Understandably, Mydin is defending the status quo as the easier and seamless path for businesses. Wee is representing expressing the interest of Chinese fruit wholesalers and retailers. 

The government could take into account their concerns, but it should redirect attention from looking at the economy and government finances in totality. Quite sound to impose tax on imported fruits, which can be locally grown and produced. And where volume is insufficient, it is the opportunity to develop local fruit production.

Sweet taste without the extra tax

By LO TERN CHERN

NATION

The Star, Wednesday, 18 Jun 2025

Always in demand: Harumanis mangoes at an orchard in Perlis.

KANGAR: Although the Haru­m­anis mango season has just ended, growers in Perlis are expecting a rise in demand as imported fruits will be hit by the expanded Sales and Service Tax (SST) from July.

Farmer Mohd Nasir Salim, 34, who grows 90 Harumanis trees in Bukit Bintang, said with imported fruits set to cost more from next month, the public should support local produce.

“If consumers don’t want to feel the pinch from buying imported fruits that cost more, check out the local Harumanis.

“They are still a premium choice and locals should go for the mangoes planted in Perlis,” he said recently.

Mohd Nasir noted that the 2024 harvest was significantly impac­ted by weather conditions but demand remained strong.

“The harvest this year dropped by about 50% due to poor wea­ther such as rainy days, but demand kept coming in,” he said.

Mohd Nasir, who began his orchard in 2013, said his wholesale price to retailers stands at RM30 per kg, although some retailers mark up the price to about RM45 per kg.

“The price has since been stable over the years,” he added.

Starting July 1, a 5% sales tax will be imposed on imported fruits under the expanded SST.

Locally-grown fruits, including Harumanis, will remain exempt.

Renowned for its intense sweetness, signature aroma and unique taste, the Harumanis, which is exclusively grown in Perlis, is often dubbed the “King of Man­goes” in Malaysia.

Retail prices for the fruit range from RM25 to RM45 per kg with premium-grade varieties fetching up to RM120 per kg.

Another grower, Mohd Azdha Jusoh, 43, who runs an orchard with over 800 trees in Kampung Belukar, said demand for Harum­anis extends far beyond Perlis.

“Despite being planted only in Perlis, the Harumanis mango is in demand in all states.

“With over 800 trees in my orchard, the fruits are supplied to every state during the season.

“Enquiries are still pouring in despite the end of the season,” he said.

Mohd Azdha said his fruits are priced at RM120 for a 3kg box, making it a more affordable premium fruit.

“They are more affordable than durian, the King of Fruits, and a better option than imported fruits.

“If the weather remains dry during the flowering season early next year, we should have a bumper harvest,” he said.

However, Mohd Azdha said that although the Harumanis mango has a short fruiting season, its cultivation requires year-round care and preparation to ensure high-quality yields.

“We need to prune the tree, replenish the soil and conduct pest and disease control from June to August, followed by ferti­­li­sation and weed control to improve soil condition from Sep­tember to November.

“When it starts flowering in December, we need to create controlled dry conditions, known as dry stress induction, and monitor the flower buds.

“Once the fruits start growing, they need to be bagged to prevent pest attacks and blemishes,” he added.

If it is apples and oranges, this is the opportunity for mass production of Be'kelalan apples from Sarawak and varieties of local citrus grown throughout the county. There are companies growing Granny and Rome Beauty apples in hot humid highlands of Malaysia.     

Local avocadoes are already being grown in Tenom Sabah and Kulai Johor. A tax break could certainly encourage more to grow the superfood. 

Not many Malaysian is aware, Agrotech Profram, an agrotourism farm in Gopeng have began researching and developing Kyoho grape cultivation methods since 2019. With the right support and incentive, the hectarage can be expanded. Who knows Mydin could be distributing local grapes in the future?

Rare apple looking Asian pear from China can be grown in Gua Musang under Malaysian climate.

As far as fruits is concern, the SST seemed reasonable.