TRADERS and consumers alike have praised the government’s decision to maintain the Sales and Service Tax (SST) exemption on locally grown fruits, saying the move has helped keep prices affordable and demand strong despite the full rollout of SST beginning 1 July.
A Bernama survey around Tambun found steady footfall at fruit stalls, particularly during weekends and public holidays, with vendors reporting robust interest in Malaysian produce such as pomelos, guavas and bananas.
Tan Swee Kong, 58, a long-time fruit seller whose family has operated a pomelo orchard for over 60 years, said the continued SST exemption was a welcome relief after initial uncertainty.
“Although there was initial worry when SST was announced, we are relieved that the government retained the exemption for local fruit. Now, Tambun pomelos are selling at a promotional price of five for RM55. Previously, a single pomelo would cost between RM15 and RM20. This has attracted more buyers,” he said.
Tan noted that the exemption goes beyond retail prices and benefits producers directly, as it includes agricultural inputs such as fertiliser, pesticides, and farming equipment.
“We not only sell fruit, we also run our own orchards producing guavas, starfruit, durians and rambutans. This helps us control costs and offer fair prices,” he said.
Fellow trader Law Voon Hing, 56, who runs a fresh fruit stall along Jalan Tambun, said the tax policy has contributed to market stability.
“So far, prices have stayed stable, and that really helps. In a slow-moving economy, price stability is important to sustain consumer interest. Demand remains healthy for bananas, guavas and papayas. Our main challenge now is ensuring we have enough supply, which can vary by season,” he said.
Law expressed hope that the tax exemption would remain in place for the long term, as it could strengthen agricultural development and support rural economies.
Shoppers have also taken notice. Saiful Nawwab, 62, called the move “timely and people-friendly,” particularly in the face of rising living costs.
“Local fruits, especially now that they’re in season, are our family’s top choice for daily consumption – bananas, for instance. Fruits are basic, healthy food, and when prices stay affordable, it’s easier for people to maintain a healthy lifestyle,” he said.
He added that imported fruits such as apples and oranges, which are also not subject to SST, remain accessible for families seeking variety in their diets.
The SST exemption on local fruit appears to be achieving its goals – supporting Malaysia’s agricultural sector, encouraging healthier food choices, and easing the burden on cost-conscious consumers. - July 8, 2025
