Consumers may have to pay much more for imported fruits with the expanded Sales and Service Tax (SST) kicking in on July 1, traders said. Kuala Lumpur Fruit Wholesalers' Association president Chin Nyuk Moy said importers faced a double whammy with the 5% SST on imported fruits and 30% increase in freight charges in Port Klang, not to mention the possibility of an electricity tariff hike.
She said many imported fruits were already subject to duties ranging from 5% to 30%, depending on their countries of origin and type.
"Fruits from countries like Thailand, South Africa and the United States already incur import taxes. With all these layered costs, we can't imagine how much apples, oranges, pears and grapes will cost after July 1," she told a press conference at Wisma MCA yesterday.
Chin said cold storage costs were also rising sharply, citing her facility's RM60,000 monthly power bill. "SST applies to transport and electricity tariffs too. That's a huge burden for wholesalers. Fruits are not a luxury, they are essentials. Vegetables are exempt from SST, and fruits should be too. You can't replace apples with cucumbers."
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