How much annual revenue will SST on imported fruits generate from 2026?

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Sales and Services Tax on Imported Fruits to Generate RM38 Million Annually from 2026

The collection of Sales and Services Tax (SST) on imported fruits is projected to generate an additional RM38 million in revenue annually, commencing in 2026. This projection was made by the Ministry of Finance (MOF). The government has also decided to exempt selected imported fruits, including apples, oranges, dates, and mandarin oranges, from this tax.
Projected Annual Revenue from Imported Fruit SST
The Ministry of Finance has estimated that the implementation of the Sales and Services Tax on imported fruits will result in an additional revenue stream of RM38 million each year, starting from 2026. This figure is part of a broader review of sales tax rates and an expansion of SST, which collectively are anticipated to add RM10 billion annually to government coffers from 2026.
Exemptions to Ensure Access to Nutritious Foods
In response to public feedback, the government has revised its approach by exempting certain imported fruits from the SST. These include commonly consumed items such as apples, oranges, dates, and mandarin oranges. This decision aims to ensure that the public, particularly vulnerable groups, continues to have access to nutritious and widely consumed food items.
Targeted Implementation and Fiscal Strengthening
The expansion of SST, which began on July 1, 2025, and the review of sales tax rates are part of a strategy to strengthen the country's fiscal position and support the local fruit industry. The MOF indicated that the SST expansion is targeted, incorporating specific facilities and exemptions as mitigation measures to ensure that the tax burden is distributed equitably among those who can afford it.
Comparison with GST Implementation
The Ministry of Finance has stated that the current SST implementation provides a more immediate fiscal impact compared to reintroducing the Goods and Services Tax (GST), which would require a longer preparation period of up to two years. The MOF views SST as more progressive due to its targeted structure and implementation, noting that goods and services commonly used by the majority of the population are generally not taxed.

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How much annual revenue will SST on imported fruits generate from 2026?

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