PUTRAJAYA: The government has decided to exempt apples and oranges from the Sales and Services Tax (SST) but Datuk Seri Anwar Ibrahim still feels it is better for people to eat a local banana a day instead of apples.

However, since many people, including the B40, eat imported apples and oranges, which are usually cheaper than other imported fruits, these fruits will get an exemption.

The Prime Minister said that although it was better to eat local fruits like papayas and bananas, the Cabinet decided yesterday to exempt these popular foods.

“There’s really no need to eat imported foods. I noticed that avocados are even being grown in Sabah. However, after many request from the public, we decided to compromise with apples and oranges,” he told the media after launching the Kota Madani project in Precinct 19 here.

“However, there will be no exemptions for other imported fruits as we have many local fruits (to choose from).

“The (sales value) threshold will now be increased from RM500,000 to RM1mil. There will be further announcements and clarification on this,” said Anwar.

In his speech, he said there were people who complained that villagers still want apples.

“They say, ‘It’s a saying from the past – an apple a day keeps the doctor away.’ “That’s not true. Actually, a banana a day is better – because bananas are high in potassium,” said Anwar.

On June 9, the government announced a targeted review of the SST rate, from July 1, 2025. The sales tax rate would remain the same for essential goods, while a rate of five or 10% will be imposed on non-essential or discretionary goods.

On June 19, the government stated that it will review the implementation of the revision and expansion of the SST on several selected imported goods, including fruits such as apples and mandarin oranges.

Earlier this week, the Kuala Lumpur Fruit Wholesalers’ Association stated that consumers may have to pay much more for imported fruits from July 1.

Importers said they faced a double whammy with the 5% SST on fruits and 30% increase in freight charges at Port Klang.

Currently, many imported fruits are already subject to duties ranging from 5% to 30%, depending on their countries of origin and type.