MCA Youth has called for the government to seriously reconsider the manner it is implementing the expanded Sales and Services Tax (SST), saying the present confusion is not just a matter of poor coordination but a matter of public trust and economic fairness.
Its secretary-general Saw Yee Fung said the government must answer a very simple yet critical question: Is the expanded SST enforcement to be based on what is officially written in the Government Gazette, or on verbal explanations given by the Finance Ministry’s spokespersons?
“This lack of clarity is unacceptable in tax policy, especially one that affects the daily cost of living for ordinary Malaysians,” she stressed.
Saw’s statement came following the government’s recent publication of the Service Tax (Rate Of Tax) (Amendment) Order 2025 as well as the Service Tax Act 2018 in the Gazette, listing commonly consumed fruits such as guava, mango, lime, watermelon, durian, and mangosteen as taxable.
Following widespread backlash, the ministry clarified that the 5% sales tax would apply only to imported fruits.
“But which instruction should businesses and enforcement agencies follow—the Gazette or the government spokesperson’s?” Saw questioned.
“Malaysians can ill afford to overlook the real issue: Our country is heavily dependent on imported food.
“Taxing imported fruits in a blanket manner means essential items like apples, oranges, and grapes—staples in many households—will now cost more. These are not luxury items; they are everyday necessities for millions of families.”
Saw noted that in October last year alone, Malaysia spent RM77.8 billion on imported food.
In fact, according to the USDA Economic Research Service, Malaysian households spent an average of US$1,940 (about RM8,208) on food in 2023—the highest in Southeast Asia.
“This shows just how serious the burden of food costs already is for the average Malaysian family,” said Saw.
“The government claims that the expanded SST will not affect most people—but how is that possible, when it touches directly on what we eat every day?”
Saw went on to urge the government to immediately revoke the Gazette’s taxation order, and to conduct a thorough review of all items listed—especially those that impact everyday meals.
“If there are errors or oversights, correct them. If implementation needs to be postponed, then delay it. What must not happen is forcing the people to pay the price for rushed or careless policy-making,” she remarked.
“At a time when Malaysians are already struggling with the rising cost of living, the government’s priority should be protecting the rakyat—not adding to their burden.”
On Wednesday (June 11) it was reported that an additional 5 to 10% tax will be imposed on selected imported goods, including certain fruits under the expanded SST regime that takes effect on July 1.
While the government has assured that essential goods and services will be minimally affected, some uncertainty remains among local traders. – June 13, 2025
Main image: The Edge Malaysia
