THE Malaysian government has announced that mandarin oranges and dates will be exempted from the sales and service tax (SST) beginning 1 July.
The decision, confirmed by Prime Minister Datuk Seri Anwar Ibrahim, follows engagement sessions held by the Ministry of Finance (MoF) with several government Members of Parliament.
Both fruits, which are widely consumed during Chinese New Year and Ramadan, had previously been subject to a five per cent SST following the expansion of the tax scope.
However, the government has now agreed to remove the tax after reviewing feedback from the public and stakeholders, offering consumers a reprieve from further price increases.
This exemption follows similar tax relief granted for imported apples and oranges, reflecting what the government has described as a progressive and responsive approach to taxation policy.
According to the MoF, the exemption aims “to ensure that the SST is applied in a fair and balanced manner, without burdening end users or affecting small businesses.” The ministry added, “In a broader context, this decision aligns with the principles of Malaysia Madani, which prioritise social justice, cultural respect, and the well-being of the people.”
The move is expected to ease seasonal inflation, particularly during festive periods when demand for imported produce surges. Still, authorities such as the Ministry of Domestic Trade and Cost of Living (KPDN) will need to closely monitor implementation to prevent opportunistic price hikes by distributors or retailers.
The government had earlier projected an additional RM10 billion in annual revenue from the expanded SST. This latest exemption indicates that fiscal goals can be adjusted to address pressing social realities, demonstrating what the MoF describes as “a targeted, people-centred redistribution of benefits.”
Overall, the decision to lift the SST on mandarin oranges and dates is seen not only as an economic gesture but also as a signal that public feedback is being heard and reflected in policy-making. - June 28, 2025
